The figure is got from the presentation figure of $12m cashflow per 1000bopd net to Range (page 8). That actually implies something closer to $35 a barrel, but then again there's another figure on the same page that says $20-25 net per barrel, so I've taken a midpoint.
In three years time the money will be very good. I can see a big ramp up in production come Q4 2012 when Texas is sold and we've got the cash to burn on drilling more wells.
Of course, strike it lucky in the Herrera's and we can raise cash on the back of a SP increase, meanign the production can be ramped up much faster.
RRS Price at posting:
12.5¢ Sentiment: Buy Disclosure: Held
