Yeah SUDS I agree. A certain amount of LOE is fixed so the more Bbls produced obviously the $LOE/Boe goes lower. The variable part I think will also come down as services companies are reducing their fees.
By way of example in Q4 overall LOE+taxes reported as $1,543,000 for 48,670 BOE produced ($30.14/Boe)
For this Qtr I've got March modeled as 40,000 BOE to give the Qtr a total of 83,991 and estimated LOE+T of $24.87/BOE. This is 20% less on BOE basis (and $2,088,700 in dollar terms which is up 33% but there are more wells online). That is the part I not too sure off, whether I should further reduce $/Boe cost. I'm happy to lower it further if you think it should be.
Still cautious as a lot of workover activity on the wells and that's LOE and not Capex.
SSN Price at posting:
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