Circa $ 10 per barrel all in cost in Cuba, upstream to downstream..possibly cheaper, Also potentially lighter API crude ( sell for more) that is potentially $ 40 per barrel profit on $ 50 crude ..when crude rises, so will profits.
Compare this to Santos , $4.5 billion in debt
$ 47 per barrel all in production cost , trying to reduce to $ 43...( heavier crude , sell for less)
Obviously it's not apples for apples, STO is a fully fledged proven mid tier producer, however is still severely stressed.
I just want to highlight the figures we are talking about when we get to the pointy end in Cuba. infrastructure is all there, the market is desperate for crude. This is an absolute stone wall game changer for any company let alone MEO.
Remember as well, we still have 2 zones of data to come in, we have only released the lower play and all those massive numbers in the news, are only based on one zone out of 3.
MEO Price at posting:
4.1¢ Sentiment: Hold Disclosure: Held
