In a previous announcement they said the first well would pay off in months( most likely two if it continues at 379Bopd).
The 100 boepd is most likely used as a lot of the verticals may produce in the 80-150 Boepd range and the $80 is an indicater that they are economic at that price.
As an example a well reaching a peak of 150 Bopd and running at a decline rate in the first year of say 60%(could be more or less) will be producing 60 Bopd after 12months or averaging 105 Bopd or 38000 BBLs for the year.
So 38000 BBLs x $80 = $3.04 mil Less Royalties so it would pay off in around 10 months.
I have not included gas and the figures are approx.
Thats one thing that impressed me with #6 is it was 379 Bopd and not Boepd so the gas is extra.
Cheers Whisky
GGP Price at posting:
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