Arasco has the following data: It has 3.1 million barrels of proven oil reserves. The cost of developing these reserves is $10 a barrel. Arasco holds a 12 year exclusive right to start developing these reserves. The current price of oil is $30/ barrel with $15 / barrel of additional costs per barrel such as taxes and royalties. Risk-free interest rate is 5%, standard deviation of oil returns is 20%, and the cost of waiting is 5% per year. What is the current value of these proven oil reserves? Show all work.