The price paid for 2P reserves is $23.70 for a producing asset.

This is a decent metric to go by. On the surface. The per barrel flowing price is 87,000.

What this does not include is any upside for unexplored acreage. There is 12,000 acres in the land package. Divided by 640 makes 18.75 sections of land. Lets say they can put 4 wells on each section. I saw in the presentation that the NPV for each well was 2,000,000 and they would have 78% of the production. Also if the land is only prospective for say 25% (really conservative I hope) then the value of the unexplored acreage would be:

12000 x .25 / 640 x 4 x 2,000,000 x .78 = 29,250,000. This is the potential that the unexplored land is worth.

Without any more wells being drilled (not likely) the per barrel flowing cost is 87,000.

With the potential value included in the 109 million price of 30 million the real cost of per barrel flowing might be $63,200.

There is some hidden value to this play.

It should rate higher when the sale price is finalized. But as we all know cash flow is king, and free cash flow is the king of kings (sorry Budweiser).