I like the calculations used to determine the s.p. however I...

I like the calculations used to determine the s.p. however I don't quite get the same numbers.

1. The 4000bopd is correct but will the still be producing 4000bopd in a years time if taking into account production decline??

2. Assuming an average oil price of arround 100usd per barrel then about 25usd will disappear for production costs, leaving around 75usd. Taking into account the Phillipine tax regime, OEL gets 40% of that (30usd per barrel sold), with the other 60% being tax. Meaning for 1 months production at the full 4000bopd OEL get to keep around 3.6million.

3. However, the first 65million what OEL's current investement is in this project they will get back without paying the 60% tax.



4000x30x100 =12mil

12*0.75 = 9mil (which OEL gets per month until the 65mil is
recouped from with investement in this project.)

9*0.40 = 3.6mil (normally monthly profit from Galoc assuming
4000bopd which is not sustainable)




Please correct me if I am wrong.