Replies to post #303559 on ERHC Energy Inc (ERHE)

[midtieroil]

Who cares what CEOs value their company at. Assets are valued by what a willing buyer will pay a willing seller. Besides CEOs don't value their own companies. That is absurd.

[Krombacher]

I think you're close. Midtieroil is right when he says that it's important to look at what companies pay to acquire reserves and not just what CEOs say.

So let's look at the example of Noble Energy buying out the shale oil company Rosetta Resources. In this case, shale oil should be cheaper on a per barrel basis given the extra effort to pull oil out compared to conventional wells.

Well Noble Energy is buying them out at $13.65 a barrel, as it is written right here in the first paragraph of this article written very recently on May 11, 2015.

And that's shale. I suppose a conventional oil well with proven reserves has a higher per barrel value. So your $16 a barrel might be right on target. Maybe adjust slightly downward because this is Africa...and right around $15 is probably about right.

Here's the article describing the Noble Energy deal with Rosetta Resources on Motley Fool. Note: I'm not saying Motley Fool is a source for investment advice...I'm saying that their reporting of Noble Energy's buy out of Rosetta is accurate:

http://www.fool.com/investing/general/2015/05/11/oil-news-first-billion-dollar-shale-deal-since-oil.aspx

Krombacher