Banter and General Comments .. BRK, page-4679

Hi @SaraahJannee

The only thing to be mindful of is that BRK are now reporting gross operated production, (as well as net production0 where previously they only reported absolute net production, after royalties .

So the 2000 BOEPD now, is ALL the production BRK operate, on a 100% basis before royalties. So that number includes not only royalties, but also the WI production of all the partners. They are reporting it this way now because most operated competitors report gross production as well.

The operator is the party that receives ALL the income from the field, pays all the expenses, royalties, production costs, and the distributes the net revenue to the JV partners according to their WI.

Previously, when BRK were receiving non operated production income, their revenue would only reflect that NET figure, as the other operators would collect all the income and pay all the expenses.

So the 2000 BOEPD number is 100% of the Jewell production, 100% of the Rangers production and the other small operated fields. That is why I mentioned a back of the envelope net production of ~1040 BOEPD net to BRK ( ignoring the ~30 BEOPD from the Carter Mitchell, Newberry, Thelma wells)

I had 1200 BOEPD Rangers and 800 BEOPD Jewell , where BRK have 80% and 52% respectively ,which after royalties gives ~1040 -1100 BOEPD. As BRK drill more wells at 80% WI, the variation between accounting for 100% of the revenue becomes much smaller.

The headline gross revenue BRK will be slightly exaggerated, but the counter is , their " costs" will also be exaggerated as they account for 100% of the production costs, and the payments to WI partners is booked as a cost. The net to BRK is the same regardless of which method they use, and doing it this way is more transparent IMO, as it indicates the true " profitability of the field production.

So in your calculations, you need to be aware of what the number you are using represents, gross or net.

And be aware that BRK will ramp, quarter by quarter up to ~7000- 9000 BOEPD gross operated SWISH production by late 2023, ( obviously well flow dependent)by which time it will be mostly from the 80% WI wells, as Jewell will have declined to ~400BOEPD of the 8000, so the net BRK production calculation will be ~4500- 5800 BOEPD.

Hope that makes sense

Cheers

Dan