The Value of Reserves in-the-Ground
Article from: OGEL 3 (2004), in Taxation
Introduction
In the early 1980s Triton Energy (now part of Amerada Hess Corporation) made two giant discoveries in the Llanos region of Eastern Colombia. These discoveries, Cusiana and Cupiagua were the largest discoveries in the western hemisphere for nearly two decades until they were eclipsed by the deepwater Roncadore discovery in Brazil. Once the Triton discoveries were announced to stock analysts in New York, the stock price sky-rocketed. This is understandable up to a point, but the stock market response went beyond that point. It appeared that Wall Street analysts and/or the market ...