SSN 0.00% 1.5¢ samson oil & gas limited

My conclusion.There's oil there, plenty of it. Why does it...

  1. 34 Posts.
    My conclusion.

    There's oil there, plenty of it. Why does it matter how fast it comes out of the ground? It's a finitie supply. Just means the well will last longer and generate less cash per day but for a longer period of time. The only way this is a bad thing is if costs are based on a per day basis as opposed to a per barrel basis.

    A lower flow will be less stressful on the equipment and require smaller capital investments but it could mean more in terms of maintenance over time. The balance is in there somewhere.

    Anyone with a bit more business experience than me care to share any other benefits of a high BOPD rate? (Other than being a pretty number for daytraders)
 
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