NEN 0.00% 22.0¢ neon capital ltd

2 wells experience significant cost over-runs, page-74

  1. 6,650 Posts.
    I am sure you can estimate the possible cost over run.

    If the rig cost say a million a day and it took 100 day to drill and the farmin cap = 25 million leave 75 million cost over run and NEN has 25% so the extra to pay is

    USD 18 million or so.

    No you can fiddle with the daily cost amount and present a range which would be say between

    USD 10 to USD 20 million.

    Not hard and there no reason NEN did give us a possible low and high ball case.

    PS Most daily drilling reports have a column showing the current cost of the well.
 
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