“This acquisition brings Sacgasco net oil production in Alberta to around 400 BOEPD (mostly oil) with the expectation of further significant acquisitions and production increases to come".
So we have 320 boepd from Red Earth and 80 boepd from Alberta Plains.
With oil prices rising from C$54 to C$76, that equates to gross annual revenue of AUD $11,534,000 to SGC using the exchange rate of AUD $79. And as quoted by @SteelInStone
Red Earth $9,227,200
Alberta Plains $2,306,800
$11,534,000
According to the announcement on 9/2/21, Alberta Plains total current production was at 100 bopd gross of which 20% is SGC (20 bopd). So total current production has since increased to 400 bopd gross which for SGC represents a 60 bopd increase being 60 x 365 x AUD $79 or $1,730,100 gross annual revenue.
Nice improvement in such a short period of time, although l think 500 bopd gross was the expectation by the end of February.
GJ expects further production increases. With Alberta Plains, production was operating at an average of over 2,000 boepd for the last five years with 2019 alone at an average of 1,400 boepd. So if SGC were to reach these targets at current oil prices, gross revenues would be as follows;-
at 1,400 boepd gross (SGC 280 bopd) 280 x 365 x AUD $79 or $8,073,800 gross annual revenue
at 2,000 boepd gross (SGC 4000 bopd) 400 x 365 x AUD $79 or $11,534,000 gross annual revenue
So just to gauge some idea here on potential revenue from these two assets using current above prices, we have;-
Red Earth $9,227,200
Alberta Plains $11,534,000
$20,761,200 gross annual revenue
Very very nice, but that is only one part of the equation. Obviously there are production costs and various other expenses to be determined to get somewhere near the bottom line. What l want to do is work out a market cap for SGC based on the potential of their current producing assets. Ok more work for me to do.
Please feel free to critique my calculations. And yes l have based these figures solely on oil, not any gas produced. Cheers
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