3800b a day at present With a prospect to rump up a production in this quoter let's make it 3900barrels/day as an average (very conservative)
Oil price at the moment $110 a barrel, but it can go both ways up or down so I'll take future price of $95USD/b to be on a save side.
OK, six months translates to 366 days divided by 2 which equals to: 183days x 3900b/day x $95=$67.801.500USD
Wow, nearly 68 millions USD for a half of the year.
Now, let's not get too excited - TAX!!!!
It is something I have no knowledge of, so I presume that it might be in the range of 50/60% of their income Taking into consideration 60% tax it still makes $27 million USD profit for half of the year what with a present exchange rates translates to $28.8 million AUD. The expenditure are to be stable or less than $8,8 million AUD which is leaving us with $20 AUD million profit for half of the year or staggering $40 million a year.
Might be some faults in my calculations as it is nearly 40C in Adelaide in the recent 3 weeks, so I encourage you mates to challenge my maths. Can you also tell me what it means to a share price, if the calculation is correct.
Thanks Kajtek
CVN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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