@plough,
At IP24Hr of 98 bopd based on the decline curve eshttp://hotcopper.com.au/threads/ann-chairman-ceo-agm-address.3056747/#post-20770871timate, 7 months of cumulative production = 14,265 gross barrels of oil.
Assuming NO ROYALTIES, LOE of $3,000/Mth and 2.5% production tax based on $38 Sales Price (assuming $7 discount to WTI currently at ~$45)
Gross Revenue = $38/Bbl x 14,265 Bbls = $542K
Cash Expenses = $3,000/mth x 7 mths + 2.5% x $542K = $34.5K
Cash on Cash Return shows payback in 7 months.
That's how I think the numbers are derived. If you follow that you know exactly what is wrong with it. Voodoo Economics!
The gem for me was the reference to EFS and spending $10M to get IP24H of 1,000 BOE and thus the extension that the cost was $10,000 per flowing BOE. No mention that was some 3 years ago with oil over $100/Bbl and costs much higher. The comparison to now when costs are much lower and price of oil much lower and how this is halved to $5,000 per flowing Bbl. I think I posted a similar concept - might have even used an old "favorite" poster's favorite Permian area to compare current costs per development Boe.
I am not an irrationally cynical person ... just thorough and there are plenty of gaps here for rational and irrational commentary.
Did anyone actually go to the AGM???
- Forums
- ASX - By Stock
- AKK
- Ann: Chairman & CEO AGM Address
Ann: Chairman & CEO AGM Address, page-6
-
-
- There are more pages in this discussion • 74 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add AKK (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
UNT
UNITH LTD
Idan Schmorak, CEO
Idan Schmorak
CEO
Previous Video
Next Video
SPONSORED BY The Market Online