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Painted Pony Pete Ltd PDPYF

"Painted Pony Energy Ltd Petroleum explores, develops, and produces petroleum and natural gas. The company focuses on the development of natural gas and natural gas liquids. The company's operations take place near the Montney formation in Northeast British Columbia. The Montney location is a sweet natural gas-saturated zone (natural gas that does not contain hydrogen sulfide or significant quantities of carbon dioxide) with no associated or underlying water. The company also has multiple gas pr


OTCPK:PDPYF - Post by User

Bullboard Posts
Comment by dalerules88on Jan 10, 2018 11:33pm
53 Views
Post# 27330712

RE:RE:RE:Pony cash costs 2017E and 2018E

RE:RE:RE:Pony cash costs 2017E and 2018E

ceremony, you're referring to this 

"current cash production costs are well below AECO, so cash will still keep flowing, all the way down to low $1 or so for Aeco (if I recall correctly, cash costs are what, 76cents, or something?)

that was a refererence to cash "production" costs, i.e. opex, not all-in cash costs;
i.e. to get the stuff out of the ground, plus royalties; beyond that, transportation costs depend on which market, and G&A/Interest are fixed or step-variable, so they change as production volumes change;

so, to get one mcfe out of ground, 0.65 plus royalties 0.06  = 0.71/mcfe (my mistake, not 0.76)

that's important, because that's basically the incremental cost of any additional production from any given property (before transport costs, of course); since lease/interest/overhead costs are largely fixed

in other words, each ADDITIONAL mcfe only costs them $0.71 (before transport)

hope that clears it up

 

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