Ann: Operations Update, page-25

The 4m revenue seems under estimated

6 wells avg 5000boed

With an estimated drilling and completion cost of $4- to $5 million per well, returns at oil prices as low as the mid-$40s.

$45 cost per barrel

@ Avg 65 per barrel - cost 45 = $20

20 x 5000 x 30 days
3m revenue

0.75 net revenue interest
Profit 2.25m US monthly

However the wells have been already paid for in the loan from Ramas ect. I would expect the returns at oil prices to be less than $38 with the 20m drilling and completion cost excluded.


$38 cost per barrel

@ Avg 65 per barrel - cost 38 = $27

27 x 5000 x 30 days
4m revenue