Philip Whiterow: 16 November 2016
Shell PLC (LON:RDSB) may be sitting on an undiscovered jewel with its onshore acreage in the US according to analysts at Deutsche Bank.
The German broker notes that prospects in the US Permian Basin are now changing hands for up to US$45 per acre, which puts a value of US$10bn on its 2bn barrel Delaware position.
That is three times Deutsche’s previous estimate, but rather than suggesting others in the industry were overpaying, as it had been, the broker concedes it may have missed a trick on the potential within Shell’s US tight oil assets.