Ann: Trading Halt, page-118

G'day Bruce,
Back because of Corona Virus - too much spare time as some activities have been cancelled.
I wouldn't assume that I am fully informed about OEL - I'm not.
Just a passing interest as I did a lot of research when I look at them during the last CR.

I understand that the course being followed isn't your preferred option.
Incidentally, I agree with your suggestions, and I am also of the opinion that F5 is the straw that....although maybe the same boat even if it was successful.

I find your all posts very informative, well researched, well written/easy to read.
I suspect that you are a pissed off due to the current situation.
I certainly didn't mean to offend or insult you.

However, you suggested
a) shut in some/all SM71 production until POO improves to improve NPV
b) ramp up GC ASAP rather than save the oil until price improve.
These seem inconsistent (save it and produce it) to me, and that is the point that I was making.

re. fixed and variable costs. The point I was making is that you need to consider fixed and variable to assess NPV and cashflow impact.
And as you point out, possibly not relavant.
As an extreme and overly simplified example,
Fixed cost $5000
Marginal Cost $5 / bbl
Production 1,000 barrels
Cost / bbl = 5000/1000 + 5 = $10 / bbl
Produnction 500 bbls
Cost / bbl = 5000/500 + 5 = $15 / bbl
Having production has a disproportionate impact on cashflow.
Right or wrong, this was the point I was trying to make.