FDM freedom oil and gas ltd

the facts and figures tell the story, page-4

  1. 257 Posts.
    I must be insane. Am I really reading this?
    Your posited production increase from March 2014 to April 2014 is 2,191 bopd. Assuming no decline on PDP wells and assuming a 30 day IP on new wells of 20 bopd (VERY generous assumption based on historical performance), the company would have to drill 110 wells in 1 month. Is this what you are suggesting? Further, given that wells appear to be costing closer to $500,000 than the assumed $250,000 they would need to incur $55m in capex in that month alone. Do you really think this is feasible, even if they can buy an unlimited number of rigs?
    I'm glad you acknowledge that the trend couldn't continue ad infinitum because on my back of the envelope you'd only need to extrapolate your trend out for another 4 years and you'd achieve 92 million barrels a day, i.e. total global oil demand. The Saudis wouldn't appreciate that too much.
    I note that on the 19th April you forecast an absolute downside in 12 months' time of 3,000 bopd and no cash at bank. In light of the quarterly report do you stand by your minimum production forecast of 3,000 bopd in a year?
    Short.
 
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