reevaluation...question mark

Too quite round here!

This is an undated article (but is 2006) from

http://www.eandpnet.com/acthighlights/ah.pacificrim.html

1. The Philippines Department of Energy has approved the Galoc Production Co.'s ( GPC ) development plan for the Galoc field offshore Palawan Island. Galoc oil field was discovered in 1981 and is located at a water depth of 1,050 ft (320 m) around 250 miles (400 km) southwest of Manila and 38 miles (60 km) northwest of Palawan Island. First oil from Galoc field in Service Contract 14 (SC14) is scheduled for early 2007. The initial development phase will produce around 6 million bbl of oil from two deviated wells. The two wells will be tied back to a leased floating production unit with a subsea dynamic riser system. Initial production of up to 10,000 b/d is the company's goal. The floater will be capable of processing 25,000 b/d of oil and 50 MMcf/d of gas, said partner Nido Petroleum. Nido said previously that Galoc contains 44.2 million bbl of recoverable oil reserves, while GPC said further upside potential exists that could increase reserves. Australia's Advanced Well Technologies (AWT) has been awarded an engineering, procurement and construction management (EPCM) contract for subsea wells for Galoc field. Partners in SC14 are operator GPC with 58.291% and Nido with 22.279%. The remaining 19.43% stake is held by a variety of smaller players.

The interesting thing here is “Initial production of up to 10,000 b/d is the company's goal.”
This is a bit different to 15,000 to 25,000 bopd that we have been hearing. Even so, if you extrapolate a few figures you still come up with some decent revenue.

Let’s say:-
10,000 bopd =
3.65m bo/ann…… less 15% downtime gives us
3,102,500 bo/ann…… x 22.279% Nido share =
691,206 bo/ann…….. (from Galoc alone)

After production costs, lets say Nido netts…
US$35/b = $24.19m/ann. (AUD$31.92m/ann)
US$40/b = $27.648m/ann. (AUD$36.48m/ann)
US$45/b = $31.104m/ann. (AUD$41.05m/ann)
US$50/b = $34.56m/ann. (AUD$45.61m/ann)
US$55/b = $38.016m/ann. (AUD$50.17m/ann)

Still fairly healthy profits by all accounts, and who knows what the price of a barrel will be worth by mid next year!

Any comments (and critter-cisms, lol) welcome.