Cmon, a good way I have found to look at costs is from using activity based cost analysis. This is why one would split the costs and segregate those non operating costs to form an opinion on the primary asset which at the moment is North Stockyard which by the qtrly made money in Dec Qtr. If we were to only value the NS producing wells and Lease then the margin less any specific G&A costs would be included. Purpose here is not to hide anything or paint a rosy picture, only to understand the asset and back out any costs not directly related to it.
This analysis is in addition to what you have done at a high level however because G&A is largely fixed in nature a $/bbl can be misleading if extrapolated without segregating the fixed/variable components and adjusting accordingly. I think you have adjusted for this in your numbers.
Hope this makes sense
Cheers
SSN Price at posting:
0.4¢ Sentiment: Hold Disclosure: Held
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