Replies to post #3035 on Petro Rio S.A. ADR fka HRPTY

[ogopogo007]

North perhaps you don't understand extractive operations.
Every day, since HRT aquired the Polvo operation, it has become less valuable

Jan 1 2013 to today is 455 days * 11,700 barrel/day = 5,323,500 barrels produced. Use whatever value for oil in the ground, 7 - $10 and polvo is worth $53,000,000 less today than on Jan 1 2013 when HRT and BP agreed on a value for Polvo. Factor in 60% an it's $31,800,000+ less valuable for HRT's portion. 1/2 of the $135M is $67.5M - $31.8M/2 is net present value of $51.5M for 30% of Polvo.

Selling portions of oilfields for what you paid for, does not enrich shareholders.

From the CC it seems like HRT is uncertain if they are making a profit from Polvo. Very strange

[DrillaHill]

My guess was based on the US$101 Million
HRT paid to BP after purchase price adjustments
(2013 production).

I feel this is what HRT should get paid
,at least, for the 30% of Polvo.
(Of course, the more the better..)

After a potential successfull farmout
HRT with a remaining 30% share
would have to pay (imo) about US$10MM for the
2014 development well,
while additional cash from
2014 production revenues and Farmout
could be up to US$100MM.

GLA