"Whoooa nelly right back atcha. You should have read the rest of the Upstream article you posted – particularly this part:
“This would indicate that the Mamba gas find in Area 4 — an extension of Anadarko Petroleum’s Prosperidade field in adjacent Area 1 — holds 48 Tcf of in-place resource.”
48 + 27 = 75 TCF
As you like references, here is backup: (Indo - thanks for the backup)
“said RBC Capital Markets in a note, adding the deal implied a transaction price of $2.25/barrels of oil equivalent.”
$2.25/boe / 6 = $0.375 per mcf "
Indo: Not so fast! Here is the quote Bonk linked from the Interfax Energy Services
Analysts in London spent the morning running the numbers over the transaction. “The price is not particularly exciting,” Iain Reid, equities analyst at United States investment bank Jefferies, told Interfax. “On a 60 trillion cubic feet [1.7 trillion cubic metre] basis for Cove’s [8.5%] interest [in Offshore Area 1], our numbers show $2.3 per barrel, whereas in Area 4, on a 75 tcf basis, it shows $2.4/bbl [for Thursday’s CNPC deal].”
So where did these London analysts get 60 or 75 TCF? ENI suggests that number is (drum roll) 27 TCF gas in place, as I mentioned.
Here is the text directly from Eni’s 25-2-13 press release
“Discovery made at Coral 3 delineation well confirms the potential of Mamba Complex in Area 4 at 75 trillion cubic feet (tcf) of gas in place
San Donato Milanese (Milan), 25 February 2013 – Eni has made a new natural gas discovery within the Mamba Complex, in Area 4, offshore Mozambique, at the Coral 3 delineation well, which is the eighth well drilled back to back in Area 4. The new discovery confirm the potential of Area 4 operated by Eni at 75 trillion cubic feet (Tcf) of gas in place of which 27 Tcf exclusively located in Area 4. “
I think the correct number is 27 TCF, of which 19 TCF is recoverable at a 70% recovery factor.
Sooo, I’ll stick to my $1.10/mcf number for the deal.
Sentiment: Strong Buy