wickerman

Gday Wickerman
if you might be able to do a NPV for SDS based on US$40 oil + one for US$50 oil......@ US$20 recovery costs and 400,000 barrels recovered over the next 10 years I would appreciate that.....
cheers


SDS has 850,000 barrels 2p reserves...currently producing around 5300 barrels per month, based on ELKs estimate of decline rates @10%PA SDS would produce around 400,000 barrels of oil over the next 10 years.....From memory around 1/3 of the proven reserves were undeveloped, so any further development of those would increase recoveries as would any further sands that proved economically oil bearing....SDS oil is currently a touch over US$40, $20production costs.....the futures would suggest that SDS oil is likely to average US$50+ over the next 10years after the discount for SDS oil is taken into account........

I suspect that the NPV for SDS alone is around the price attributed to ELKs entire assets (Aus$4.8mil/US$3.5mil)in the recent raising...

Cheers