With an average well flow of 25 bopd this converts to 9000 bopy. At say $100 WTI the oil price to MAD is $US110/barrel or a gross revenue of about $US1 million per year.
Also the well is cashflow positive in around 3 months after recovery of the completion costs of $US260,000. With a well life of around 6 years each new well quickly increases the cashflow of the company.
MAD is a slow burn stock but is seems to offer a low risk entry to the oil sector and the prospect of geometric increases in cashflow.
FDM Price at posting:
28.0¢ Sentiment: Hold Disclosure: Held
