Ann: Clarification of Potential EUR, page-4

Cost are not factored in ,guess we have to look at similar companies, i think on the previous thread i mentioned you can look at a Certus
press release in 2022
https://certusoil.com/index.php/news/
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I think it outlined what the wells generated BOE and what annualized cash flow from operations was generated , and you can look at the ratio of Annualized cash flow over BOE to get an estimate of 1-27-33 well annualized cash flow.
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I think since SHE has a Net working interest (NWI) then SHE will have to bare the 26.25% of the costs, but i have assumed this is what the initial 2.85 million AUD is, else we have to ask what are they paying for. Most of the cost will be initial drilling etc, then maybe re-stimulation and later on royalties.
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A large part of the overall cost post drill is royalties,but these don't kick significantly till after payout and are a function of BRENT oil cost as the royalties paid are a sliding scale of BRENT oil cost, but capped at a maximum and minimum.
Royalties from looking at Alberta website are around 33% of net profit post payout but pre payout are only around 4% net profit
Please do your own checks on this as im learning as going.
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At 2.7 USD per mmBTU the well is not amazing unless they can extract a large percentage of EUR,
but what is interesting is what affect will the Trans mountain pipeline have on prices in Edmonton if the port in Vancouver is targeting Asia-Pacific including Japan. Also northern hemisphere is approaching Autumn and winter.
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I'm sure David would have taken all that into consideration and did say he could not wait any longer for Louisiana wells and kick started Alberta wells to time it so it matches the pipeline and winter arriving soon.
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