Replies to post #155045 on ERHC Energy Inc (ERHE)

[YankeMike]

Eaxctly Ruby.
Posted by: YankeMike Date: Tuesday, December 30, 2008 10:18:25 AM
In reply to: None Post # of 155055

Formula for share price:

S.P. = [R * 0.1(OP)]/ 722M

S.P. = share price in dollars
R = Proven oil reserves
OP = Price of crude oil in dollars

So if you plug in 344M barrels of proven reserves, and an oil price of $70, you come up with a share price of approximately $3.33.
This formula gives a ROUGH APPROXIMATION of the share price based on proven undeveloped reserves. Obviously, many other factors need to be considered.

Mike