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?
VIL Price at posting:
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