Jewell Oct Gas production

Jewell Oct gas production number in.



Gross raw gas production for Jewell was 87.87 million CF or 2.83 MMCFGPD.

This is the gas produced at the well head. From previous calculations we know that each 1 million cubic feet of gas contains 100-120 barrels NGL liquids and upon extraction of the NGL liquids there is a gas volume shrinkage of 40%.

Therefore, the processing of the 87.87 MMCFG would produce between 8800 and 10500 barrels NGL and the shrunk gas volume would be ~ 53 MMCFG or 8830 BOE

Whilst the Jewell Oct  oil production number has not yet been published we know the IP30 was 1604 BOEPD with oil ~800 BOPD. Using that number Jewell Oct oil production should have been ~25000 barrels.

With BRK's WI in Jewell being 42.5 % it's net production should be

~ 10600   barrels oil  at  US$75 ( av for oct) per BBL for gross revenue of US$ ~795,000
~3740-4460 barrels NGL   US$35 (ave for oct) per BBL for gross revenue of US$131-156,000
~ 22.5 million cubic feet gas ( 3750 BOE) at US$ 5.2 per MCF for gross revenue of US$115,000


Therefore total gross Jewell revenue attributable to BRK  in Oct was ~US$1.04- 1.07 million.

Taking 20% royalties  ( US$200k )and US$5 per BOE production costs( US$94K) the Jewell net revenue to BRK would have been ~US$ 740-780,000 or ~20% of the cost of the well.

Just as a teaser, if Rangers emulates the Sundance Kid well, we are looking at at least doubling the above revenue per month just from that well added to whatever the Jewell production is at the time, acknowledging the steep decline that follows.

Merry Christmas everyone, stay safe and looking forward to an amazing 2022.

Cheers

Dan