Things are looking up !, page-27

The P50-mid cost scenario of US$39/bbl was not the extraction cost but rather the price at which the project breaks even. This is the point where NPV=0 on a full field development and full life cycle basis. Estimate only of course.

Given that NPV includes royalties and state taxes but not federal taxes (as noted by their estimates at the time), this implies that the P50-Mid estimated cost of extraction (average on full field etc) is around US$31/bbl. Using this figure, at PoO of US$70, the profit after royalties and state taxes (but before federal taxes) is a little under US$18 per bbl. At $80 oil this profit is a tad over $23 per bbl and $100 oil has a profit before federal taxes of around $34 per bbl.

Now, this is just a point on a range of breakeven scenarios. I don't know to what extent artificial lift has been figured into various scenarios within contingencies etc....but even if they were not reflected a (say) $2m cost per well for 1200 wells in a full field development is $2.4 billion. On a per bbl basis, the resource estimates suggest that this will be under a dollar per bbl.

The other thing to bear in mind is that the acreage is now much larger than when the estimates were done. Expanded on the basis of extending the HRZ thermal maturity sweetspot. One would presume that if this baby flows then the prize pool is commensurately larger too....and hence the full field economics may benefit from further economies of scale.

All just my speculation while we patiently wait. And all IMO. DYOR.

GLTA.