Ann: VEN: Operations update Odin-1 flow rates, page-9

Hi @stumpytrunks

we are all a little in the dark when it comes to pricing and costs but I can see the logic in your assumptions. (my working assumption was $10/gj price and $3/GJ cost which is pretty close to your $8/GJ nett)

As @OldGeo said then add in some Vali production @2.4mmscf/d. (assuming $7/gj less $3/gj costs)

A very rough cash flow would show MEL as

1		Odin 1	2
2	Vali 1	$165
3		$827
4	Staff costs	$-171
5	Admin and corp.	$-249
6
7	Net $$ from operating activities	$407

The big issue though is whether or not production costs can be controlled. The last qtrly shows production revenue at $8.3/gj however production costs were $12/gj. (which was only Vali and its associated issues) Even if Vali only breaks even next qtr Odin could provide an operating profit.

@OldGeo what's your opinion on operating costs? Do you think they will stabilize this quarter or is it to early?

It would excellent to see MEL not just produce but produce an operating profit next qtr!