figures further revised

With the update to the flow rates at J#1 released yesterday by GGP I thought it might be worth revisiting some of the calculations and doing an update too.

Now present oil flow rates have increased by 40% from 500 bopd to around 700 bopd and they are also getting 350,000 cubic feet of gas a day

For NEO with effectively a 5% Working Interest now that means that NEO's share is 35 bopd and (when they get the gas piped and able to be sold) 17,500 cu feet of gas a day.

Let us assume a conservative nett return to NEO (after production costs, royalties and tax {probably none = write off} ) of say US$ 50 per barrel and say US$ 6 per mcf for gas.

So 35 bopd x US$ 50 = US$1,750 per day or US$638,750 per year.
And 17,500 cu feet represents 17.5 mcf x US$6 = US$105 per day or US$38,325 per year.
That would provide a "nett" income of US$677,075 per year according to my reckoning.
Now I could have overlooked something and I am happy if someone else can find any detail that I may have got wrong there. So please regard the above carefully.

Of course it is highly likely that those figures are going to have to be upgraded again in about 3 weeks when the final flow rate has been established.

That upgrade could see those figures rise quite a bit yet.
And , of course, at this stage it is just from the one well.