RE:Sustaining Capitalwallop13 wrote: Does anyone know what the cost is to maintain production is? $ per BBL or total cost for a year. I can't seem to find that info. Seems like it's high based on 2015/2016 capex vs production.
I took a look at Suncor, Meg and Cresent Point to compare:
- It looks like Suncor will spend $15.98 cad a barrel to maintain production in 2016 (45% of budget is sustaining capex)
- Crescent Point will spend $17.94 cad per barrel (assuming their whole budget is sustaining capex)
- Meg is $9.75 cad per barrel
- BNK is spending 9.89 cad per barrel (if 2015 exit production is 18,000 barrels)
Based on these numbers I'm guessing BNK would be in line with Cresent Point and Suncor if BNK were to maintain production. Once you add G&A expenses and debt interest payments all these companies need at least $45 to $50 oil just to maintain production.