Post by
drunk@noon on Mar 24, 2024 7:54am
the key is the income tax payable each year.
If one assumes 22,500 bopd and 85 brent and sga 32 mill, 230 milll op ex, 150 mill cap ex 8 mill exxploratii and 14% royalties (they seem to float in the 13.5%) you are taking 180 million us or 240 mill canadian free cashflow BEFORE CASH TAXES. So the question is what do you model for taxes. Assuming they can add another year of 20,000 production to the 4 years life of the field, you can mulitply that amont by 5. and then rest of the proceeds during the years of declining production can be applied to costs of closing down the field as well as pushing out those costs, whle the Billion dollars CDN have already been redeployed into another project/or projects. Not bad for a 430 mill market cap. It's all about pushing out the reclaimation costs and packing hundreds of million of dollars into the piggy bank over the next 4-5 years.
Comment by
bullhorn3 on Mar 25, 2024 11:41am
My comment about broken logic refers to the original post "the key is the income tax payable each year" by drun@noon, not you. My major objection about you is your replies to firstworld. Press "ignore" and your pain goes away.