I would be surprised if they sell a nil FCF generating oil...

I would be surprised if they sell a nil FCF generating oil business for $60m.. especially with a recession cloud hanging over everyone's heads and oil prices under pressure.

If I remember correctly, their sort of wells cost about $1.5m to $2m to develop and each produce about 200 BOEPD. Last quarter grew by 300boepd. So we can take off about $3m of the capex to calculate a steady state FCF. Last quarter's FCF was loss of $3.3m, so if we do that then we see there is no real FCF to be generated in this business if you assume steady state maintenance capital and current oil prices.