EU natural gas prices at $32 per MMcf ..RK making MoneyA quick appraisal of the current value of RK gas production can be deduced from the sales price of gas produced versus the new Royalty Rates.
So, we are at the same 29% for gas prices up to $11.33 US per mm cf = $7.90 US per MM cf net to Kub
Above $11.33 , we get 35% of the sales price of $32 US per MMcf = which is $11.10 US per MM cf net to Kub.
Add them up ( $7.90 plus +11.10 ) and we get $19 US per MMcf which is about $$115 US per boe ( conversion factor is 6 times )
At most recent report, Kub was producing 35 boepd of natty gas which is 3100 boe per Quarter.
Thats about $350,000 US per quarter which is well above the current operating costs..
Ie we have some free cash flows to the balance sheet even under these oppressive conditions