Carcetti Capital Corp V.CART.H

Losses in Q2 ?

[nozzpack]

A 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..estimated as..

Cost of production replicated from Q1/22 with similar production was $52,000 US.

G & A about $200,000, same as Q1/22 excluding special bonus.So operating losses in Q1 would have been minimal, excluding any special bonuses