Best time to have a buy back then, don't you think. The wait and...

Best time to have a buy back then, don't you think.

The wait and see is important as the wine rack development of back to back drilling, completion and tighter spacing of wells can significantly decrease well costs and increase reserves. The company has no control over commodity prices but can have some control over costs and reserves depending on development.

I forgot to mention during the AGM, DP highlighted this using the sensitivities from the IRR.

A tighter well spacing treating the Sycamore and Woodford zones as one unit will result in increased reserves and production over and above the BRK development program of 20 wells individually over a 5 year period. The batch drilling will decrease D@C costs due to the back to back nature allowing for longer contract times( not spot prices) , decrease unit production costs due to increased volumes.





So you can see the effect of an increase in production and decrease in capex and opex has.

For the base case, a 10% increase in production increases NPV 10 from $254 to $308 million.

A 10% decrease in operating costs and 10% decrease in capital expenditure increases NPV10 from $254 to $282 million.

DP said in the current situation where the enterprise value of BRK stands at ~$50 million ( MC- cash and liquid assets), leaving a potential $20-30 million on the table would not be in the best interests of shareholders.

So waiting a few months to see what comes out of the Courbett development in terms of these sensitivities and how BRK uses that information regarding monetisation pathways is more than prudent for BRK to do.

In the meantime the cash builds, the buy back continues( hopefully hundreds of millions of shares at 1.5 c or less) and more BAU stuff.


Cheers

Dan