It is interesting to look at their net sales volume (reported in...

It is interesting to look at their net sales volume (reported in each quarterly) against their production cost (per quarterly cash flow). If you take the period from the beginning of 2018 (excluding a strange +ve expense in Q3-18), the average cost per bbl is US$16.42. This is pretty good compared to industry averages. The average oil price (after transport deduct) for the same period is $50.21 so the gross margin at a production level is not bad at all (67%). The ugly part comes in when you include Employee and Administration/Corporate costs, which takes the cost per barrel to $46.24. The Q2-19 costs per barrel are $8.11 at the operating level and $10.50 at the total value but there seems to be an anomaly in the sales volume (66% higher than the previous 3 quarters which is probably a reflection of improved production from their new wells) for that quarter which decreases the cost per barrel significantly. I agree that this is not necessarily a reflection of the operating efficiency but is the reality of an ASX listed company operating in this space. Q3-19 and Q4-19 production/sales and operating cash flow will be interesting to see.

DYOR