How much does TIV "say" they have or really how much can they get out of the ground and how many years/decades will it take?
Lets put it this way...the old CEO used to tout millions of barrels, even 100's of millions (billions too?) of TIV oil reserves, but for experienced oil men like myself we would chuckle at how he "painted the picture" or "told the story" to make it seem like TIV had "mammoth reserves" (like he said in an interview). Maybe he did this to get the Opus members to put in $100 million, since most of them had a lot of extra dough to throw around but little, if any, industry experience/knowledge and they just wanted to be oil tycoons. You see, the old PR's would use Original Oil In Place (OOIP) reserves, which are really meaningless, especially if its in an old abandoned oil field where some of that (most?) oil has already been recovered. Or if its for "tar" reserves, like at PV, where the "recoverable reserves" (10%-30% of OOIP?) cannot be recovered at all if the oil price drops and costs increase because it is always very economically fragile to operate and produce tar, hence the reason why it was "Idle and Abandoned and orphaned when they got it.
So, in reality the "worth" of their oil reserves is determined by applying a dollar figure to the Proved Developed Producing (PDP) type reserves and they sure aren't producing much. Its very difficult for a savvy oil man to put ANY value on their millions of barrels of pie-in-the-sky oil "reserves" that they say they have after implementing some state-of-the-art operation, or from zones that haven't been proven, or exploration wells. If TIV was a proven oil oil finder and operationally solid it might be different but they have a many decade long track record of not being able to bring all those reserves to market and the market place is fully aware of that.
Geo
AI
