Why stonehorse energy growth is awesome, page-78

The SHE report in Jan has the production stream as per below


Gryphon Wapiti Hz well 16-2 successfully tied in andcommenced production January 1, 2024.Perth, Western Australia – 15th January 2024 – Stonehorse Energy Limited(ASX: SHE) is pleased to announce the Caroline well’s IP 90 averageproduction at an impressive 1,085 BOE per day of sales, equating to 285BOE per day for Stonehorse’s net 26.25% working interest.The Company is also pleased to announce the successful completion, tiein and first production on the Gryphon, Wapiti well.Key Highlights:Caroline 01-27-33-05 well production performance:• Produced over 80,000 BOE (Raw Sales) in the first 90 days of production.• Operational Uptime of >97%.• Current daily production summary January 15th, 2024 (estimated sales):❖ Gas vol: 3,200 mcf/day❖ Condensate. vol: 190 bbl/day❖ NGL vol: 370 bbl/day❖ Water: Now less than 35 bbl/day and continuing to clean up.❖ BOE 8/8ths: 1090 BOED❖ SHE BOE net equivalent (26.25%): 286 BOED



No oil produced, just condensate plus gas and NGL.

Condensate can be treated as oil in this case as mentioned before, and that is to which the $ 20 per barrel production cost and $ 50 per barrel net cash margin can be applied to.

Speaking in gas terms, and not converting to BOE, the well is producing 3.2 million cubic feet gas per day( 3.2mmcfgpd) at a cost of $ 1.2 per mcf or a cash margin of $1.3 per mcf. This means the well cash margin on a 100% basis is 3200 x 1.3 = $ 4160 per day. SHE’s 26.25 WI produces $1092 per day…. The same number I showed in the previous post.

As I said, you can use BOEPD for a multi stream production well, but you need to seperate the individual streams in term of flow and price received per BOE,

At US$ 80 a barrel of oil, for a BOE of gas to fetch the same value, gas needs to sell at $13.33 per MCF.

I really hope you get a grip on this concept as I’m running out of ways to explain it.