I was just looking at your figures LOTM. Based on your figures below of 100bopd then it was a fantastic sale for AZZ. NOW WE DRILL 4 NEW WELLS @180 BOPD EACH ( cozart)which gives us 720 bopd. Its a no Brainer......great sale for AZZ Even if the 4 wells produce half of 180 bopd its still good value
......................................................... Just sold an asset that costs the company nothing to own. They had a free carry on every single well drilled.
On 80 acre spacing, that meant @ 110 wells in total.
Each well achieves payout in 12-18 months after this Antares got its 6.25% WI (other than the 1st well 4.25% WI)
That translated into @ 5-7.5 bopd per well plus some natural gas and NGL. Another 15 wells wee due to reach payout this year alone.
So net production would have been @ 100 bopd plus the rich gas and NGL. ........................................................
AZZ Price at posting:
38.0¢ Sentiment: LT Buy Disclosure: Held