TriOil Resources Ltd TRIAF

RE: RE: RE: RE: RE: $1.1mm for a section at Lochen

[aagold]

Ok, well that's an interesting point.  Could you elaborate on that 10,000 boe/d number a bit more?  Why is that the magic number? 

I'm assuming the issue is that to be self-sustaining, they must invest enough capital each year to generate new production that at least compensates for the natural decline in existing production.  So the existing level of production must generate enough cash to pay for both fixed corporate expenses (which are independent of the level of production) and enough new capex to compensate for well decline.  So I guess that's a fundamental problem with junior E&P's - they're always at the mercy of the market.