what is it worth, page-5

to get $50 net back per barrel I use the following:

-Assume sell price of $110

-Royalty + Land owners share = 10% + 1% = 11% = (12.1)

-Assume 20% as Operating costs = (110-12.1) * 0.20 = (19.6)

-Pre-tax cash flow = 110-12.1-19.6 = 78.3

-After tax of 34% = 78.3 * (1-0.34) = 51.7 net cash flow - say $50 per barrel.

-If one was to calculate related depreciation charges for after tax profit. I would use development costs of ~$65m on recoverable reserves of say 20Mb ERH share, therfore subtract about $3.25 per barrel for depreciation to give about $47 of net profit per barrel or 43% net margin.

Keep in mind that the field is onshore, and there is extensive infrastructure around it which has ample capacity.

Oh, another thing, these are my estimates only and are only speculative. DYOR and dont be silly with your hard earned!!