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Permalink Reply by T. Eric Blocher on May 25, 2011 at 8:37am

I think we have mixed apples and oranges.  The Geologic research and understanding of the similarities and differences of Marcellus shale compared with other plays (ie Barnett) are all VERY important factors. These need to be considered in a quality appraisal of the lease rights. They help determine an estimate of the value of those rights.  Once that value is determined and a Limited Partnership is established which owns those lease rights, the issues I discussed come into play and center around the valuation of the limited partnership interest which owns the rights.  There is a difference between owning the land and owning a non controlling portion of an entity which owns the land.

 

I think the methodologies I spoke about can be used in areas of speculation and where there are proven wells.  I am not suggesting that anyone ignore sound geological reasoning and was assuming that it is present in the appraisal supporting the assets owned by the LP.   

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Permalink Reply by daniel cohen on June 15, 2011 at 4:13am

Dear FXEF,

Perhaps I'm way wrong here, but it seems as if the conversation so far is focused into pretty strict specifics of  particular points of interest revolving about the valuations  for limited partnerships. Your question goes to the much broader issue of LLC's. Although I personally appreciate that thread, I wonder if it does a service or disservice to the discussion as a whole?

Dan

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