By the time the well is paid off the flow of oil is significantly reduced. Most of the flow comes very early in the wells life and is used to repay the investment into the well.
What's left after that is indeed excess cash, but it is relatively small, would take a long time to meaningfully increase the cash balance. I doubt BRK will keep most of the wells they drill for the life of those wells.
If cash exceeds current mkt cap any reasonable timeframe into the future, it will be because they sold some land, not because of oil production income.
By the time the well is paid off the flow of oil is...
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Last
1.2¢ |
Change
0.000(0.00%) |
Mkt cap ! $57.27M | |||
| Open | High | Low | Value | Volume |
| 1.2¢ | 1.2¢ | 1.2¢ | $37.13K | 3.094M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 4 | 648453 | 1.2¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 1.3¢ | 28031377 | 34 |
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| Last trade - 15.17pm 26/07/2024 (20 minute delay) ? |
| BRK (ASX) Chart |