RE: No $70 net backs Current netbacks are closer to $60. Western Canada Select heavy oil trades for $85 bbl.
Using Tuscany's production costs of $17 bbl and 2% royalties leaves a very hefty netback.
Production from the first Macklin well averaged 87 bbls/day over the first 3 months.
The second and third wells were still producing 100 bbls/day each after 2 months.
That's a lot of bang for $1 mil / well.