AI
Friday, December 17, 2010 7:19:37 AM
Check this out. A much more robust valuation.
This time I managed to get what appears to be a fairly realistic cost using Akpo as a guide for developing the JDZ at $13.51 billion. This number is based on how much on investment that you need to spend in order to produce 500,000 bpd and therefore a life of about 10 years. Note, it does not take into account synergies from Akpo.
Also, this time I discounted the cash flows to the company using the company's WACC.
I also added 9 million shares to the shares outstanding to reflect the recent shelf.
***AND*** my natural gas calculations are not based on BOE, but rather actual NYMEX prices for the amount of natural gas we have with respect to NSAI's estimates.
Enjoy:
Krombacher
This time I managed to get what appears to be a fairly realistic cost using Akpo as a guide for developing the JDZ at $13.51 billion. This number is based on how much on investment that you need to spend in order to produce 500,000 bpd and therefore a life of about 10 years. Note, it does not take into account synergies from Akpo.
Also, this time I discounted the cash flows to the company using the company's WACC.
I also added 9 million shares to the shares outstanding to reflect the recent shelf.
***AND*** my natural gas calculations are not based on BOE, but rather actual NYMEX prices for the amount of natural gas we have with respect to NSAI's estimates.
Enjoy:
Krombacher
