Yep another worthless accounting rule causing wild swings in stock prices. O & G equiv. to M 2 M. You really can only get useful information from some kind of industry specific EBITA or cash flow calculation. Just think, all of these accounting rules were supposed to make F/S more transparent. Ha.
These guys drill a 15 million dollar dry hole and then put it on the books as an intangible asset called industry knowledge or something. There is no way to know what is really going on. You just have to look at the cash flow.