Banter and General Comments .. BRK, page-2135

Not quite, those costs are per BOE, not just oil. BRK produce oil, gas and NGL's so you have to have a BOE price to match the BOE cost base.

The current BOE price BRK get is ~US$ 58, it is a high number because oil makes up over 50% of the production stream at the moment, and NGl's make up the other 30 -35% with gas ~15-20%.

To work out the BOE price for using the last production numbers as a base., the Jewel was producing 1727 BOEPD made up of

973 barrels oil at say US $ 80
440 barrel NGL at US$ 32
314 BOEPD gas at US$ 5 per mcf of US$30 per BOE

The total daily revenue is 973 x US$ 80 +440x US$32+ 314x US$30 = US$77,840 +Us$14,000 +US$ 9400 = US$ 101,240.

To get a BOE price divide the total revenue per day by the BOE per day or US$101.240/1727 = ~US$58.62 per BOE

We need to avoid using the oil price as the multiplier in a multi stream revenue base, we always need to try to convert into a BOE price estimate for that revenue stream. As the % of production changes we need to adjust the calculations along with the changes in prices.

Hope that helps

Cheers

Dan