I was just going over the announcement of reserves (15th March 2019). Still scratching my head to work out the reserves...and what it really means. Report says 33,000 bbl is attributed to Rex-1. Assuming a profit margin of $30 bbl, there's barely enough oil there to cover half the 2.5M cost of that well. So far in my commentary, I've been concentrating on monthly/weekly revenue. I have not looked at total value of OIP or recoverable OIP. Now that I tried looking at the ROIP parameter, I'm left puzzled to say the least. Am I missing something? Based on my current understanding, it seems theres not enough oil there to pay for the capital outlay at current prices. Grateful for any informed insight, esp from management, if they are reading this (which they should).
WBE Price at posting:
0.5¢ Sentiment: Hold Disclosure: Held
