Paul, I agree with your cost breakdown except for one part - the...

Paul, I agree with your cost breakdown except for one part - the deduction of corporate tax. Corporate tax is not deducted from each bbl of oil sold, unlike royalties and state taxes. Corporate tax is deducted from the bottom line at year-end if the company makes a profit.

So what your calculation actually demonstrates is that the company receives $52.73 netback or contribution margin, depending on your terminology, from each $100 bbl of oil sold. Thats a better netback than many oilers make from US onshore oil.

Cheers, Sharks.

PS: you havent answered the question - where is the 1062 bopd MAD is reporting as the March avg coming from if the small wells are no good?