I appreciate your comments Slampoil. You seem to know a lot more about oil than I do..
So if U2 flows the same as U1 wouldn't it be in our best interest to just drill out the field with 4 additional wells?
Mitsubishi have already exercised their option to fund 40 of the 50 million required for the 2012 drilling campaign. Imagine getting 6 wells up and running producing 1500 BOPD. With the margins of producing the oil this field could be the ultimate company maker?
1500 BOPD x 6 producing wells
9000 BOPD.
365(days) x 9000 = 3285000 barrels of oil for the year.
Say we sell the oil at 110 as mentioned in a prior interview. Eric stated this should be the price we will get for the oil. see quote below
"Based on our current operating costs at our Blina and Sundown oilfields we expect that trucking costs will be in the order of $28 per barrel and lifting costs will be in the order of $10 per barrel. These transportation costs will be significantly reduced if we proceed with the construction of an export tank in the north. We expect the oil price we will receive will be close to the price of Brent, which is currently around US$110 a barrel."
That would be..
3285000 barrels of oil x $110 = 361,350000 total revenue
Take out $40 for trucking and lifting costs.
3285000 x $40 = $131,400000 Total Costs?
Profit = $229,950000
50% share for Buru = 115 million.
So if Ungani-2 brings out excellent results you would be pretty gain to sell tomorrow considering the 2012 exploration program is fully funded and we still have 35 million at bank?
As a speculative investor I like to assess the possible outcomes before they happen. This is so I dont get trapped into selling an excellent stock too early. I will be watching very closely first thing tomorrow to see what is reported on the results. If it's great then I wont be selling a single share. If its ordinary then I will see what happens. Good luck guys.
BRU Price at posting:
$1.30 Sentiment: Hold Disclosure: Held
