Ride the Tiger with CD Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Ride the Tiger with CD

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: ogi who wrote (118591)	6/14/2008 3:12:10 AM
From: TheBusDriver	Read Replies (1) of 313127

I hate to tell you guys this but 43,000 bbls of oil production (total) is pretty much nothing.....being kind that is only $500M per well (@$120/bbl)....how much is it costing to drill, case and perforate, then produce? I doubt they make $150k per well...at 30 bopd that would be $3,600 pd cash flow and the well will produce for 4 years so they can make the $150k-$200k+/- profits....this does not take into account any workovers that might be required, any fall off in production as the reservoir is drained, or oil dropping into the $75 region........that is about a 40% reduction (pretty close to a fib number too) and would reduce their cash flows as well.....BWDIK? Only way I see this working is scale of numbers....how many wells they going to have? What are the guys on the various O&G threads saying about NOG? I don't own it right enough but have no reason to bash it either. Wayne

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next