Buffalo Financials, page-33

Many thanks for the input. Plenty to go on there. It's good to get the grey matter thinking again (no smart comment here please). I'll adjust the data to reflect some of the big ticket numbers - profit share, rehab costs, 5 year pumping, etc and leave the PV and discounting stuff to others. Happy to email the final spreadsheet to anyone interested in developing the model further.

Bottom line for me is Buffalo looks like a good earner. The actual value to shareholders is variable but I think the numbers will look attractive to any potential interested JV partner. Of course the wild card is the price of oil. The Yanks seem to be doing it tough with shale oil with many bankruptcies due to costs and oil price. It seems the industry is viable above USD 50 to USD60 per bbl and this may put a cap on WTI as pumpers can switch off the tap quite quickly if the price tanks and on when prices surge. They seem to be major swing producers these days. WTI USD60 translates to USD65 to USD70 for Tapis so I think using USD60 for the model is reasonable. Not sure what Buffalo quality is and whether it is as sweet as Dorado which may sell at a small premium to Tapis. Anyone know the quality of Buffalo.