valuation....

Can someone take a look at the below and let me know if i'm on the right track.....

Barrel of oil - $70
Cost per barrel - - $40 (could be as low as $20 in the future)

1,000,000 acres could produce up to 7.2million barrels of oil

therefore currently 350,000 acres should produce roughly 2.52million barrels

revenue - $176,000,000 (from 350,000 acres)
cost - $100,800,000

= $75,200,000 p.a

Does this sound right or am I totally off the mark?