This is what david deloub said regarding cost of production,...

This is what david deloub said regarding cost of production, royalties etc.

What is the expected profit per barrel of oil and mcf of gas post Royalties, production costs etc.

GAS PRICE US$2.50 Mcf – TOTAL COST US$1.50 Mcf = US$1.0 Mcf.

OIL PRICE CAD$95 Bbl - TOTAL COST CAD$30 Bbl = CAD$65 Bbl.

Question 6)

Is this well as likely to give as good a rate of return on Stonehorse Energy investment as the Certus well.

. We calculate it will give us ~50% better ROR in the Gryponinvestement case. this is due to; a combination of;lower D&C cost of investment, shorterpayout period and higher value product (light oil v. gas and NGLs).

for the Caroline well

Question1)

Howmuch is SHE expected to receive per mmcf or mmBTU when they sell the outputfrom Certus well 1-27-33.

AreRoyalties to Alberta already factored into the price they sell to Alra Gas ?

Questions2)

DoesSHE pay any fees for use of the pipeline that will transport the GAS ?

Q1.& 2. All in cost (royalty, transportationn, processing, opex,marketing) for nat gas is ~$1.20mcf and for oil its ~ $20.00bbl.

Oil is now trading at $78 bbl and cost (Transportation,prcesing,opex, marketing ) is around $20 per barrel, leaving a $58 profit/BBL.

Initial production of SHE was reported as 286 BOED (Barrel of oil equivalent per day) *58 Dollars /barrel is around 16500 USD dollars per day or 26,500 Australian dollars per day.
How much is that in 3 months ..approximately 2.388 million. Production started after the end of imminent quarterly.

Gryphon well
Gryphon was half the investment but 150% of the return of the Certus well., so contribution over 3 months may l be around 1.7 million using info from David deloub answer on investment hub.

Add the two together that is around 4.18 million in 3 months, over the year the well will decay slowly. but you can approximate the earnings over the next year or two.