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.