Just going through Ann?s and the one released on the 24th Feb(investor Presentation) has a few answers. (Source: http://www.grandgulfenergy.com/documents/842.pdf see page 7)
We actually have a 70% NRI (Net Revenue Interest) and that?s more than i thought it to be initially. We do have a 4.75% WI (4.28% after project payout) and that means once we have paid the initial 1.2 M well cost, we are only paying 4.28 % of the bills still get 70% of the profits after royalties etc. Did a quick calculation again with LP?s production rates and NRI in mind
=== GAS === 31MMcf/d = 31000 MMBTU/d, 31000.00 * $4.679 = 145,049.00 per day Or $52,942,885.00 per annum
=== OIL === Estimated oil production is1400 BC/d 1400* $95.26=$133,364 per day Or $48,677,860.00 per annum. Making the Gross Income from La Posada well be at ~$101,620,745.00. Royalties $12,702,593 approx. @ 12.5 (1/8) leaving us with $88,918,151.87 another 12% for TAX, operation etc so take out further $11,114,769.10. This leaves us with NRI of $77,803,382.76. GGE?s Share is 70% of NRI. No wonder they reckon its a company maker and of economic value between 50M-180M (Source: http://www.grandgulfenergy.com/documents/842.pdf see page 7).
And then there is Desiree, A PURE OIL MONSTER (Drilling July ~40% WI and 75% NRI and Oil Resources 600-800 MBO) and Josephine (Drilling August is again ~40% WI and 75% NRI and has 40% oil and 60% Gas) It is now just a matter of months, this has multi bagger written all over it !
No ramping ... just facts!
Regards Gaurav
GGE Price at posting:
0.4¢ Sentiment: Hold Disclosure: Held
