Ann: Oil Discovery Extends Western Flank of Florence Field., page-91

Hi Auto

I said previously that I would try to calculate how many bopd they were producing.
Here's a very basic calculation.
In AKK/FPL Investor Presentation dated 5/6/2017 they stated
100 bopd production = A$80 k per mth in revenue to AKK/FPL.
So $80k x 3 = $240k per @ 100bopd.
Revenue as per their latest Qrtly showed revenue of $168k which is 7/10 of $240k.
So 7/10 of 100 bopd is 70 bopd.
When they paid US$2M for IOG's
Florence wells we were told they were producing 50 bopd and this was constant.
So for all their drilling and associated costs over the last 2 years they are getting at best 20 bopd production.
This is probably from Magellan which is the one with the 790 ft oil column.
In June last year WTI crude was at US $46 per barrel and as the average price based on what they received should have been higher this quarter it makes the bopd production even less.
One well drilled this calendar year.
Mr Hart Snr got a good deal there as his equipment is leased out yearly.
Hardly used, not much depreciation to account for.
Notice when they are drilling, Admin & Corporate costs blow out.
Is it because they are using their own crew and only drilling during daylight hours that the staff are being put up at the Florence 'Grand Hotel' and shareholders are footing their bill.
I wonder.
The Stag season is coming so the less wells the drill the more money they save.Lol.

What a way to run a business.