Might be worth going back to the original announcement
Drilling $5.7M
Completion $11.3M
hook up $0.3M
Total cost to the JV $17.3M split two ways would be $8.65M each
Add to this $2M (net OEL) for drilling and LWD issues before the sidetrack of $1.7M (net OEL)
and you have the well costing $12.35M for OEL share
Remove the $2.9M already paid and OEL have a further $9.45M to pay
Cash last quarterly $40.5M less another $9.45M to pay + call it $2.5M net production for the upcoming quarter and you should have a balance of $33.55M which is ~1.1c cash backing.
So EV of AUD$5.7M for a company currently netting $25-$30K USD day. Assuming 1500bopd this could conceivably increase to $55-60k USD net a day after all production/staff/admin/corp costs.
looks very compelling should the well flow and flow well noting the F3 produced at ~1500bopd (with next to no decline) for the best part of 6 years.
OEL Price at posting:
1.2¢ Sentiment: Buy Disclosure: Held
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