I posted this for cheap likes on 23/3 post, GoNuke, I think I’m going to repeat it for V_H’s benefit because I’m getting too stuck into some non-fancy Australian bottle to knock it out again:
BRU preso states A$30 to A$25 profit at 1250bopd when Brent is US$50@75c = A$66.66/b
US$6/A$8 is the FOB Wyndham discount so production costs are A$28.66 to A$23.66/b ... which at 1250bopd over a year is A$13m to $A10.8m pa. (Using 365 days production for sake of example)
At current A$89.80 (ie A$82 after deducting FOB Wyndham $7.80 @ US$6@77c, trying to use round numbers for sake of example) at @3000bopd, annual revenue is A$89.79m
Deduct production costs of at least A$10.8m plus what another 10%? 20%? Whatever... operating profit of say $75m pa. Take off a few mill for admin and corporate, whatever... current MC is less than $140m, say very approx. double potential earnings
Never mind Brent at A$100+... Never mind introducing partners to fund high impact drilling... Never mind the gas fracking moratorium being lifted... (and I’ll just add never mind the forthcoming Reserves Upgrade for more cheap likes)
$450-500m MC is coming.
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