Forget the complicated formulae An initial rate of 75000bbl/day = 27.375million bblpa Using 0.8245 as the factor by which rates decline each year, the sum for 9 years is 123million bbl. In the 9th year the rate would be 5.85million bblpa. HDR would receive approx. 5.20 million bbl in year 1 declining to 1.11million bbl in year 9.
Presumably the operating cost/bbl increases as the well declines and at some point in time cost = realisation and the well is abandoned.
HDR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held