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fsmith1952

10/21/09 11:00 AM

#24336 RE: Durkkdiggler #24335

It's not clear to me what the pv10 value actually means. In looking it up... my understanding is that it's a pre tax value and doesn't take into consideration many costs associated with doing business.... I am also wondering... IF this valuation means that in the lifetime of these wells... their total production would make them worth this much. IF so... then what kind of annual income might they produce? I know that the price of oil/gas fluctuates a LOT... so any estimates could change drastically depending on market conditions. Also... I wonder what market conditions were like WHEN this PV10 value was set.

fsmith1952

10/21/09 11:01 AM

#24337 RE: Durkkdiggler #24335

Durk... can you redo your "BTW".... From what you wrote I can't tell if you think the LOI will succeed or fail. From what you've written it sounds like you expect it to fail.