Alicja BYRSKA-RAPALA

University of Mining and Metallurgy, Cracow, Poland

THE FAIR MARKET VALUE OF THE COMPANY EXPLORING HYDROCARBON ASSETS

Abstract

Since many centuries the meaning of worth is the main problem in the philosophy and economics sciences. In that context the evaluation of geological properties is now one of the most discussed topics in the economics literature.

The first part of the paper reviews the methods used to determine the geological (mineral producing) property providing to estimate fair market value.

The restructuring, capitalization and privatisation process of mining and fuel sectors brought us the need for appraisal of geological prospects. The shareholder’s, stakeholder’s and environment’s interest is causing the necessity to create the alternatives methodologies of fair market value estimation.

In the second part of the article a new alternative attitude for fair value in the companies exploring hydrocarbons is presented.