DADS when they started drilling in May 2017 the oil price was...

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wabbit

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28/01/19

16:46

Post #: 37242964
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Originally posted by DADS55: ↑

I really don't see anything in this report that we didn't already know. The production number is better than what I worked on the back of a beer coaster. I though somewhere around 1600bpd would be a reasonable number.
As for the hedging, I really have no idea, but it sounds reasonable on todays prices...…... and I guess you just got to trust their judgement.
The new wells coming on line are critical. In the past we have had the initial numbers earlier than this. If I remember correctly they fracted the Vaga wells mid December. It hope it is just a matter of this new fracking process taking longer to clean up.
The other issue is the decision on continuing the drilling program after the next 4 wells. Originally I got the impression that once the first 6 month program was complete they would continue to drill. At one stage they were suggesting a 2 rig program. They have been far from clear over the last few months.
The other point to note is that the WF reserved based lending can be used a proportion of the funds required for acquiring a producing asset. In there lies my biggest concern

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DADS when they started drilling in May 2017 the oil price was lower than what it is now at $51 and the drilling cost have come down and we are getting way over that price I cannot see a problem if we are getting above $51 per barrel.

FDM Price at posting: 12.0¢ Sentiment: Buy Disclosure: Held
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