costings v production, page-9

Beachtrade: You say if an oil company could drill 250 wells for $100,000,000 which in total would produce 500BOEPD you'd jump on it...

Are you sure? A $100,000,000 investment to bring in about $18,000,000 per year may sound nice, but not if you factor in your ongoing costs. Operating costs would make many wells uneconomic at just 2BOEPD. I'm trying to get my head around cost of producing a barrel of 'algae oil equivalent', and I'm not sure what the price and salability of algae oil will be.

This story ticks all the boxes for a cliche feel good, politically correct, environmentally hippy friendly, fairy-tale style story, but that almost all I get when I try to find anything out about this company. Fairy tales are lovely for putting you to sleep in the evening, but I'm not going to put my money into one without a solid financial reason. What are the running costs? What are the processing costs? Other than giving myself an excuse to tell my friends that I'm investing in some hippy save the planet scheme, and all these vague "It's going to the moon!" style posts, what is there to convince me to buy?

I've read every price sensitive announcement this company has ever put out, as well as most of the others. I love the story, and I hope it all goes well, but to invest I want to see more solid economics. Lufthansa is taking part, that's great, but they're prone to taking part in pie in the sky uneconomic environmental dreams. We're small fry to them, and basically, if AEB fizzles and dies it's no loss to them, but if it's the planet-saving company, they've sealed the deal before the game has started.

I've read most of the last few months of AEB discussion on Hot Copper, and it's pretty much Paul saying "They're going to the moon! I have secret information! I've bet the house on it and I'm going to be rich!" and so on, while the price just keeps falling.

Feel free to convince me to buy; I'd gladly stick a big pile of money in which will help us save the planet and help existing holders make their fortune sooner.