Oil and Gas Valuation - $ per flowing barrel and working interest
Hey guys, don't know a whole lot about O&G valuation so was hoping someone with industry knowledge could help. Assuming the following for an asset:
- $20M purchase price
- 1000 BOE/d production
- Average 75% working interest across the company's wells
Would the $ per flowing barrel metric for this company be $20k ($20M/1000 BOE/d) or $26.7k ($20M/[1000*0.75])? Not sure what the standard way of looking at this might be. Thanks!
bump
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"(just make sure the 1,000boe/d isn't already net of working interest)"
Ah, got it, thanks!
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