So a well which cost 70% more than the company expected and produces 45% of what the company thought it would gross is a success - only on planet BYE can this be considered a success.
Predrill 1500 BOPD gross from the two wells - they are producing 45% of predrill expectations - a theme which has been relatively constant through each of the four wells drilled in SM58 to date (G#1/G#2/G#3/G#4)
-G#1 was meant to pay for everything going forward when this didn't eventuate
- G#2 was going to pay for everything going forward when this didn't eventuate
-G#3 & G#5 were expected to gross 1500 bopd - stabilised production isnt looking promising.
They have incurred the best part of $40M in drilling costs/ near term prepayment repayment and debt repayment which will eat up all of the companies cashflow through christmas.
BYE Price at posting:
14.0¢ Sentiment: None Disclosure: Not Held
