Thanks, Vince for those insightful posts, if I remember correctly, you also hold some shares of LEAH, currently valued at zero, like mine-- or did you get out long ago?
As far as earnings go, I researched Teton Petroleum Company, (TPCO.U), they are drilling oil in Kazakhstan too, but mostly within Russia
These figures are the estimated economics of that company, based on $12/ barrell, I do not know how close their costs would be to those of LEAH, as the region is diverse, even if they are not that far apart. (Teton operates currently with the Eguryakhskiy license out of Novo Agansk, which is apx 100 km north of the Nizhnevartovsk.. LEAH operates on the Tyumen field)
Sales Price, (Gross Revenue)
$12.00
Vat -$ .92
Excise Tax -$ 1.81
Mineral Replacement (10% - 70% returned)-$ 1.02 (based on 10%)
Royalty (6%) -$ .56 (which LEAH may not have to pay)
Road Tax (2.5%) -$ .23
Other Taxes (1%) -$ .08
Salary with Taxes -$ .24
Oil Preparation -$ .27
Transportation -$ 2.82
Operating Fee -$ .73
Total Expenses -$ 8.68
Net +$ 3.32
This is based on $12/ barrel. At $10/ barrel they get around $2.36. With the info that Leah has given us, the profits seem more likely to increase as more wells are put into production. In the document that I posted from the DOE information bureau, we see that production has been limited because of government restictions. It would also make sense that you shut- down your most expensive wells when the price goes down. Alex Nafanilov wrote and told me that, "In regard to Sibmach, the oil is pumped from company-owned wells. At the present time, there are a great number of wells that are not pumping because of the low oil price. Once things turn around, and I realuze[sic] oil prices have moved up, but there is a need to stabilize prices, shareholders will see an expotential jump in oil revenues."
Leah, with owning SibMach interests also gets revenue from drilling equipment. We don't know how profitable it is over there. I imagine that the depressed money over there allows for increased demand on products, cheaper wages, but at the same time, lower selling prices.
But at any rate, I realize that at this time, my investment in LEAH does not depend on oil share prices, profit margins, or net worth of the company. It is entirely dependent on how, or if Leah mangement works to save the credibility of their company this next week. |
