FAR 2.91% 50.0¢ far limited

I posted some hope for volumes a day or so ago. But with so...

  1. 6,650 Posts.

    I posted some hope for volumes a day or so ago. But with so little hard data the uncertainty factor is huge.

    Also in an earlier post I wrote about a start up FPSO cost.

    Here it is again

    Drill and complete 10 wells at USD 100 million each
    Supply one FPSO for 20 years of production. cost say USD 500 million

    Total cost USD 1.5 billion.

    Operation cost say USD 5 per barrel

    Peak production say 100,000 bopd.

    Assume 10% decline rate.

    With. USD 50 per barrel the project cash flow positive within 3 years.

    FAR capex = USD 225 million.

    Key as always is flow rates per well and oil price.

    In my view SNE commercial as is.
 
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