Payback on Astra and Fire Sky Acquisitions
Payback on aquisition of Astra and Fire Sky (data from announcements)
boe/d net back $/day Cost
Astra 4,100 $52+ 172,200 90% liquids 160 million
Fire Sky 1,500 $42+ 78,000 95% liquids 58 million
Combined 5,600 $44.68 250,200 218 million
Daily Net Back $250,200
times 30
Monthly Net back $7,506,000
Payback 218,000,000/7,506,000 = 29 months or 1.2 years
The payback will likely be a lot less than 1.2 years as the price of oil has risen since acquistions were made and also the net backs above will likely be higher with synergy savings that should more than offset carrying charges on the 18 million in assumed debt from the acquistions.