GREY:ROAOF - Post by User
Comment by
Bigbadoilon Jan 13, 2006 3:15pm
![](https://assets.stockhouse.com/kentico-cms/0342-00/images/Sprite.svg#id_Post_Views_Icon)
166 Views
Post# 10160328
RE: Keith
RE: KeithYou have ot remember the 35000bbl/d (total fliud!) is for the four horizontal wells they are drilling in 2006. West Brenda comes on the following year to maintain production. Nicol was not included in the original statements by Oil. If that is slated for 2007 then that is why production is going up in the 2nd year???? Art said a 22%
decline rate at the AGM with last economic production 8 years out. If you back calculate it out based on that you get 37mmstb total. But of course the original 35000/d is total fluid. We are thinking there is going to be a 20% wc intially but this will go up over time of course. Anyway if if they get 20000/d oil for the first year at $50 thats $365mill revenue. If we halve it to get the CF ( rule of thumb but may not be correct) they will have $180mm per year. I figure 1/2 way thru the 2nd year and this puppy is paid out.
Just a thought..
Bigbadun'