BB-Heritage Oil Company has just received the exploration rights to an oil field with substantial reserves. The estimated reserves amount to 10 million barrels, and the estimated cost of developing them today is $150,000,000. The current price of oil is $40.36 per barrel, and the estimated production cost per barrel is $15. The dividend yield is assumed to be 5%. The company has the rights to these reserves for the next 20 years and the twenty-year T-bond rate is 1.85%. The annualized variance in the price of oil is estimated to be 15%. There is also a development lag of 2 years from the start to production. Estimate the value of this oil company and provide explanations for every calculation you use. Assume this is the only project for the company.