Firstly, it matters not if its 1 well or 154 wells. I made the spreadsheet the do the calculation on a well basis. The specific question posed by you related to 154 wells - highlighted - "A question for Gordon Gekko or J R Ewing...... If a conventional well costs "average" $1.5m to drill, $3m to complete (fracking included), produces 500K EUR oil for the life of the well, at a $20-$40 profit (per/barell), for a total of $10-$20 million profit - multiplied by 154 wells, ........Is the venture profitable? "
Secondly, I did not chose $50 oil. The use of $50 oil was guidance provided by Terry Barr, CEO SSN. At his presentation at IPAA, on Slide 6, wrt to Rainbow project "full cycle breakeven oil price is estimated to be $40 (realized Bakken) or $50 WTI". Also on slide 22 wrt to Bluff is some text you know well because you quote it often and it clearly says $50 oil.
Don't try and make up something that is not there and put it on me.
You've got the method, do the calculation yourself. The exercise will be a learning experience for you. You've made your dislike for my posts perfectly clear.
SSN Price at posting:
0.8¢ Sentiment: None Disclosure: Not Held
