Correct. They report production numbers for the quarter for the...

Correct.

They report production numbers for the quarter for the 3 months July-September and report revenue for those months, but receipts are received 1 month in arrears so this quarter represent the cash flow from June-August which are the numbers that appear in the 5B cashflow statement.

A little confusing and could be explained better by the company.

In addition, to clear up another matter, I would question the MD why they are still showing the WI being 41.5 % when by all accounts, the well has paid out which means Black Mesa should have earned it's 25% back in (as per the well bore only farmin with BRK/ BM) so the SHE WI should now be ~31.13% IMO. That could be another reason why there has been a " drop" in revenue.

Some production data for you guys.

Below is the 12 month production data for Jewell for oil and raw gas or 2 stream data.

I have calculated the 3 stream data ( oil, NGL , processed gas) to help give the total picture.



1 = oil in barrels for the month
5=raw gas before NGL extraction for the month.

So in August, Jewell produced 5695 barrels or 183.7 BOPD for the month vs 5023 barrels , or 162 BOPD for the month of July.

Raw gas production increased marginally from 61.6 million cubic feet for the month at 1.99 mmfcgpd in July, to 62.2 million cubic feet at 2.01 MMCFGPD in August.

The raw gas is rich in NGL's to the tune of ~63 barrels per 1 million CFG ( derived from the BRK quarterly). When NGL is extracted from the raw gas stream, the gas volume shrinks, in the case of jewel ~ 30%.

To calculate the NGL production for the month, at 63 barrels per 1 mmcf raw gas, we multiply the production numbers by 63 giving NGL production in August of 62.2 x 63 = 3919 barrels NGL at a daily rate of 2.01 x 63 = 126 barrels NGL per day.

The processed gas volume in August ( after shrinking 30% on NGL extraction ) is 62.2 x0.7= 43.5 million cubic feet gas or 1.4 MMCFGPD or 233 BOEPD process gas.

So in August 2022, on a 100% WI, the Jewell well produced 183 BOPD oil, 126 BNGLPD and 233 BEOPD gas for a total daily 3 stream flow of 542 BOEPD.

The 2 stream flow from the well head was 182 BOPD plus 2.01 mmcf raw gas per day ( or 335 BOEPD raw gas) or 517 BOEPD .

The gas decline has moderated as expected and Jewell will transform to a low decline gas well, producing a high NGL flow, with some oil which will continue to decline at a much more rapid rate. Still will be a very good cashflow producer for many years to come.

cheers

Dan