dear sav-j our educator, page-5

MWS

Will let Sav answer the first bit ;)

However, if u've been on HC for long/short time, u'd know the quality posters on different threads, by now :) As a forum, HC bring individuals from different areas, however at the end of the day, if u can gel y'r research & what others have posted on rocks/valuations/research etc, u can easily put all this thro'. And remember, 'Google' is a very powerful word/research tool!!

Eventually, there are triggers for a SP way beyond an individual's post if thats what u r wondering, so thats why cap-raising, farm-out's & drilling, are necessary going fwd.

2) Flowrates are determined by the porosity of the reservoir. No reservoirs flow the same, as geology & property of oil (namely specific gravity, viscosity & composition of oil) are the variables. Thats why u have oil sands in Canada that dont flow & limestone reservoir at Ghawar (the world's largest oilfield) & salt cap discoveries, offshore Brazil. However, each field has its recovery factor & over time a reservoir would eventual deplete based on flowrates. If the rates slow down then operators resort to injection wells or artifical lifting. Is happening in the USA & Gulf now. So, from a desktop perspective, rec rates can vary from 10-40% (depending on porosity, API gravity etc). (An analogy to this is a toast coated with peanut butter or honey/ maple syrup or a dry/wet sponge, the cavities represent pore space aka porosity, allright)

3) That fig. of $35 can vary as per the mkt triggers. Higher the POO, higher the expenses & so on. Having said that, from an operators perspective, if POO is say US$70/bbl, production, transport & refining costs are say US$30/bbl, then that $US30/bbl is subjected to state-royalty (10% in NT) & the balance is the operator's net profit. Thats why the terms CAPEX, OPEX, Gross & Net profit get mentioned.

Good luck with the course work & Tutorials, which uni are u at, AGSM? Few years back they were using Woolies as a case history!! Heading into July, u could perhaps download the full-year reports from Woodside, RIO, BHP & other juniors, its a wealth of information depending on y'r appetite for knowledge. Good luck.