stop the rot !!, page-45

jake002

"if your claims are based on fact, then we s/h need some answers. someone posted that MPO has spent $100m on Bakken and Spearfish, so there goes most of the money from sale of Gloucster."

You can find the information freely available on the ASX website in the GLJ reports. The production decline curve indicates that they will be producing at 20bbl/day/well after the first year. Which means each oil well will earn CAN$1000/day before tax (this is based on MPO?s variable and fixed costs remaining at $30-$40/bbl).

Further to produce the 27 MMstb they will need to drill 270 wells which will cost $459 mil.

Where are they going to get this money from? I doubt our producing wells will cover this cost.

The economics will improve with the price of oil but this is not a factor that MPO management considered in their investment decision.