Paul.The reserves where calculated two yrs ago, at that time, using the parameters they used the 100m barrels of reserves where deemed profitable. Just as the reserve statement for pgi was issued many years ago and they too thought pgi would be profitable. Do we deem pgi reserves to be nothing too cos they can't make a profit. No cos that's silly talk. Mad can produce oil in wells that are profitable and unprofitable. Over all the wells are profitable, and so some not all of the reserves are right. Every dry hole reduces the reserves., just like every hole that is over producing adds too reserves.
No one knows how many wells are producing and at what barrels. Too make it worse we will never know, because management don't want to release it. So talk of whether the wells are profitable is subjective. If you go by the profit report, they certainly are. But if you go by cash flow they appear not, because the company has to put in plenty of money to drill the wells, so production keeps increasing and hopefully one day cash flow from oil is more than drilling costs, so it's self funding. The aim of all oil companies
FDM Price at posting:
27.2¢ Sentiment: Sell Disclosure: Not Held
