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Harken Energy Corporation (HEC) Message Board

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  • dhrosier dhrosier Jan 14, 1998 10:57 AM Flag

    80m big money

    Tracing the thread back from your latest (which is #148) it appears confusion started at #144 which relates to reserves found by Parkcrest and Rochester, 2 Canadian companies.

    For Harken, there is some consistency in that 2 analysts use $6 and $10 per share per $ billion, respectively. Both are
    rules of thumb that reflect different assumptions as to (1) the rate of recovery (barrels per day), (2) the price of oil over the
    period of recovery, (3) the discount rate to determine the present value of the stream of dollars from 1 and 2, and (3) the
    incremental costs of recovery such as taxes, cartage, etc. I am sure I left out and over simplified but that is the substance of the
    calculation as I understand it.