rookwood at 150 bopd

These are some rough cash-flow numbers, if Rookwood comes in at the low side ...

150 bopd, USD oil price $35, A$ 70 cent, production costs A$30, royalties 11% of the net

= 150 bopd * ((USD35/AUD0.7)-30) * 0.89

= 150 * 20 * 0.89

= 2670

Oil price is reasonably bullish, but below current 12 month forward prices. Production costs are a bit higher than the Cooper. I'm assuming royalties etc are the same as in SA.

OK, so the well makes $2 670 per day. OEX has 59% of this, so thats $1575 a day.

That amount should pretty much cover their admin costs ($81K in the last quarterly), but drilling etc would need to be funded some other way.

Now, that sort of flow rate seems to me to make Rookwood a candidate for US-style acid treatment, fraccing and so on, and Oilex would have enough in the tin to pay for that.


On the brighter side, 300 bopd leaves Oilex with about $3K a day cash, which leaves them with a decent amount each quarter to go participating in drills (including Rookwood step-outs).

Ian Whitchurch