OIL DISCOVERY VALUATION - As you may recall, you were going to do a fun valuation exercise that you could discuss at a personal interview (1. base case, 2. distressed, 3. bankruptcy, 4. non-U.S.). You were going to study up on the base case of how to value an oil discovery that isn't drilled yet so there is no oil production resulting in cash flows and revenues. In other words, how are oil discoveries valued, as opposed to producing oil wells?

*** There is no actual Excel financial modeling to be done. Don't do a corporate valuation of the company that owns this oil discovery asset. Rather focus on the valuation of that oil discovery asset alone.

Then you were going to see what changes in your valuation methodologies if the corporate owner of that asset becomes distressed. Then you were going to study what changes if that company becomes bankrupt. Lastly, how would your valuation approaches change if that bankrupt company was a Russian entity, e.g. not in a developed country like the U.S., but rather international / developing country / emerging market.

Plan on giving a slide presentation, and remember to include footnotes / citations of all of your sources. Save the URL of any good websites and PDF copies of any good reports. You are welcome to get any help you want from classmates, alums, professors, industry professionals, and any other contacts.

For example, you can study bankruptcies of U.S. oil companies who filed in U.S. bankruptcy courts, esp. the valuation methodologies and pricing to acquire those distressed assets. In other words, find a frame of reference by researching various examples of U.S. oil company bankruptcies.

When footnoting your slides, please include the entire website address of your sources used in your bibliography, not just the name of the citation or reference.

Please email me when you are almost finished so that we can schedule that personal interview. Enjoy and good luck!