Hi @fincmifr
Thank you for your input, it is much appreciated.
Just want to clarify a few points.
BRK is far from a marginal producer.... and production is not it's business model. Production is a by-product of the asset revaluation process, and at high oil/ gas prices, a valuable by -product of drilling to get the SWISH DSU's Held By Production, which moved the mineral rights, and therefore the reserves from the leaseholders to BRK, which facilitates revaluation of the acreage leased by BRK.
Currently BRK breakeven costs are US$20m for the Sycamore formation based on the Jewell well, and US$ 30 for the Woodford ( modelled) as per below.
BRK presentation 28/7/2022
In all honesty, as we only have a 2 well sample ( the above based only on the Jewell) with Jewell exceeding expectations, and Rangers slightly below expectations, I would expect the Sycamore BE to approach US$30 over the longer term.
Current production and transport costs for the 3 SWISH wells is ~US$4-5 per BOE as much of the production is still in flush flows. The low decline STACK production averages ~US$8 per BOE .
During last week's Sydney roadshow I asked DP what current netbacks were per BOE which he said were ~US$60-65. That is the margin of post royalty BOE produced. These netback are positively affected by the high % oil flow in the hydrocarbon mix so off course, the POO has an impact, but is not the only pricing factor of the BOE netback.
HH gas prices are not correlated to the POO in any significant degree .
HH gas prices are correlated to USA gas demand, which is mainly a function of temperature (extreme cold in winter, high heat in summer) effect on power generation and heating, Mexican pipeline and LNG exports countered by Canadian gas imports.
NGL prices are more correlated to gas prices .
The POO will be very important for the Bradbury AOI, which if successful will be a predominantly an oil producing project, where currently production is immaterial to BRK at 2-5 BOPD from the Thelma well.
I only mention this because looking at BRK as a producer of oil and gas , rather than an oil and gas asset developer/ monetiser, where production is a very beneficial by-product and only one monetisation pathway will result in erroneous analysis and misunderstanding.
Cheers
Dan
- Forums
- ASX - By Stock
- Ann: Phase Two Development Drilling Underway
Hi @fincmifr Thank you for your input, it is much appreciated....
-
- There are more pages in this discussion • 14 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add BRK (ASX) to my watchlist
(20min delay)
|
|||||
Last
1.0¢ |
Change
0.000(0.00%) |
Mkt cap ! $47.72M |
Open | High | Low | Value | Volume |
1.0¢ | 1.0¢ | 1.0¢ | $39.29K | 3.932M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
39 | 31502608 | 0.9¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
1.0¢ | 2080067 | 9 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
36 | 29446720 | 0.009 |
16 | 3687698 | 0.008 |
4 | 2510000 | 0.007 |
4 | 6995000 | 0.006 |
4 | 2508000 | 0.005 |
Price($) | Vol. | No. |
---|---|---|
0.010 | 2080067 | 9 |
0.011 | 44142582 | 33 |
0.012 | 13569609 | 19 |
0.013 | 20316703 | 18 |
0.014 | 11877951 | 15 |
Last trade - 16.10pm 13/09/2024 (20 minute delay) ? |
Featured News
BRK (ASX) Chart |
The Watchlist
LPM
LITHIUM PLUS MINERALS LTD.
Simon Kidston, Non--Executive Director
Simon Kidston
Non--Executive Director
SPONSORED BY The Market Online