in Oz - the defn of "reserves" is different to USA .....(1P versus PDP, 2P versus PDP/PUD/ etc)
to assess value add - look at the cost per boe "found" ....essentially the shale play game has replaced "geological risk" for range of economic outcomes (vol recovered per well)...........
the prob is then "how does a company get to self-sustaining" production levels ......in a free capital world - its an easy game ....in a capital constrained world ...I rekon its 1500-2000 boepd .......
only a "few" have achieved this (ADI / Aurora / LNR/SSN / RFE (before they put too much debt against it....)etc etc..
IF debt is put against the assets ...in most cases "equity" owns the tail production .......but mr market doesn't always "get this" .......capex treadmill .......
rgds
V_H
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