GREY:SDRYF - Post by User
Post by
straightupon Aug 25, 2010 9:25pm
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Post# 17384241
Numbers look good to me
Numbers look good to me The 15.75/ barrel netback for Kom Omba is not to be split with Dana when you make your calculation. The 15.75 is for each barrel that goes to SDX. After gross production is split.
So say Kom Omba produces 5500 barrels a day in a year from now. Oil is 75.00/ barrel
SDX gets 2750 barrels a day. Each barrel will provide 15.75 netback to SDX. Dana has 15.75 from the other 2750 b.
example: 2750 bopd x $15.75 (at $75 wti) = 43,312.50 rev. per day
43,312.50 rev. per day x 365 days/ year = 15,809,062.00 that does not include Gemsa.
The cost to drill a well is 2 million as taken from page 6 of MD&A at Sedar May 31 for anyone interested. That is split though with Dana, so 1 million to SDX.
If you are worried about a drop in oil price you must keep in mind that a 10 dollar reduction in the price of oil/ barrel does not come directly off the profit oil. The agreement is much more complicated than what you see at the investor presentation but SDX has done a good job at simplifying it.
70% of a barrel sold is what they call PROFIT OIL lets use $60.00/ barrel
70% of 60.00 is 42.00 the other 18.00 goes to cost oil pool as they call it.
The state gets 77% and SDX gets 23% of the profit oil so 23% of 42 is $9.66 netback at 60.00 oil. At that point the drilling is almost fully funded by cashflow from Kom Omba and that does not include Gemsa which is already at 1000bopd or any exploration upside which is what K.O. is really about if you read between those lines in the MD&A May 31 Kom Omba. Read about the other basin in the area producing 250 000 bopd and no that is not a typo.250 000bopd. I will try to find out soon how far away that is.