Hi mate Definitely NPV will need a discount rate applied and...

Hi mate

Definitely NPV will need a discount rate applied and inflation has an effect on that discount.....and it is not just the POO, but gas and NGL prices need to be included in the mix as well. As mentioned however , there are other factors, geologic, infrastructure etc which impact say, the " risk" of development which affects the NPV calculation, even before any discount is applied.

Rangers is going to be special in terms of oil production for BRK, at least during the initial flush period.

Taking the Sundance Kid well into consideration, the Rangers will be draining the same reservoir t ~1000 feet to the east. This well was producing ~1700 barrels oil ( not BOE) a day in August, and still increasing by the looks of things. This rate is effectively twice the stabilized Jewel oil flow, and BRK will have ~ twice the equity in the Rangers. So one can have a pretty high level of confidence that Rangers should provide a x 4 boost to BRK oil production as compared to the Jewel . Not sure if many people have grasped that concept.


Cheers

Dan