Why is it a problem to try $70 oil on your spreadsheet, just for...

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buc

7,875 Posts.

11

09/05/15

14:49

Post #: 15247836
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Originally posted by cmonaussie ↑

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.

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Why is it a problem to try $70 oil on your spreadsheet, just for the exercise?

Pretty easy to replace $50 oil with $70, and let's see the outcome.....................I'm anxious.

SSN Price at posting: 0.8¢ Sentiment: Buy Disclosure: Held
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