Granger,
It was quite clear that I was not debating the $6/bbl field operations cost.
The asx is full of oilers making "operational" profit, but who seldom turn a NPAT profit, and generally consume vast amounts of new investment. The costs in the game are the finding and development costs, not the operational costs.
SAE show a NPV of approx 15 USD/bbl at WTI of 85/bbl, and 30 at 125. From that I would infer breakeven around 45/bbl. Remember that will be higher than 45 once you cost in risk.
It certainly explains why they were able to aquire these projects cheaply, when peoples outlook for poo was probably circa 50 to 60/bbl.
Great opportunity in a high poo environment, but don't kid yourself, this is high cost oil, and this project would likely not be profitable with prices of 3 years ago.
EL
Granger,It was quite clear that I was not debating the $6/bbl...
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