Buc, Here's a view from a company I have a long position in -...

Buc,

Here's a view from a company I have a long position in - quick guide to look at the "Profitable" question. It does NOT answer the "Value Generating" question of did it make a return on capital employed.

I used that to then create one for the potential Bluff oil project - all guesses on number you provided and then some estimates (who knows if high/low).




Now do that for Bluff. Just answering whether it is PROFITABLE or not. Whether over time the project is VALUE CREATING for the capital used/generated over the time period of the project is not answered.

You're welcome to change the numbers to suit. Not saying its right/wrong or correct. Used the $3M well cost and $50 oil as the selling price. Obviously the differences lie in what's not been included in the All-In costs and the accuracy of the estimates for LOE/G&A/Financing.