oil to be had, page-61

LWR,

It’s hard to not disagree with you.

I just hope the UK consultancy group got is right with the live Brent oil sample. Even if the reserve is only a fifth of the size, and submersible pumps are needed, it should be profitable and sp should not fall under that scenario. MTO

Q: Is an onshore 5 million barrel reserve with a flow rate of say 200 barels per day, still profitable? I think so.

5,000,000 at recovery rate 35% = 1,750,000 barrels
200 per day @ $90 price / barrel = $18,000 per day
CapEx around $5,000,000
So a payback of 277 days or 9 months or 55,400 barrels of oil.

There would still be 1,695,000 of barrels left or $152 million future profit.

Sounds too good to be true. Any comments?