CEO- have a look at the Sept 2015 quarterly published results, when we produced 70500b for two continuous months of operation. Total costs were stated as $1m for operations plus $1.4m admin/ overheads. So, during the 2 months of actual production the costs were effectively $1m op+ $1.4x(2/3).....let's say $2mAUD total for $70500B
=$28AUD/barrel!
Based on recent announcements, BRU have also stated that they are reducing costs with the new trucking/transport contract being negotiated and improved shipping economics, with the ability to secure larger vessels due to the larger storage tank BRU can now utilise
.......so our cost will be less then $28/B, just based on the initial targeted production rate of 1250bopd
The cost/barrel will Keep reducing with economies of scale......once production rates are ramped up
BRU Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
