Well now you have to support that 5c don't you otherwise its...

Well now you have to support that 5c don't you otherwise its upramping?

That price makes SSN MC of ~$130M and an EV of ~$150M. Reckon you'd need minimum 2,000 boepd (at a multiple of $75/boepd and that would be high these days I think).

The flip side of (3.) might be SSN at 0.5cps if MOB runs the figures using forward strip.

Let's be real clear on the BB - it's effectively a margin account secured by 1P PDP Reserves. Just like if you went to a brokerage and bought $10K of a stock and they gave you $10K margin loan so you could buy $20K. When the stock drops to $8K in value they are going to ask for $2K cash to be deposited. Rough analogy.

These are real risks and ought not to be discounted.