Can you check my math? Hi, All:
2,500 barrels a day from one well; let's extrapolate.
Say 400,000 barrels over the lifetime of the well (this is form a blog posting on the Bakken formation: Each well is estimated to contain 500,000 barrels of recoverable oil.).
One well per 4 acres means 4,000 wells on a 16,000 acre parcel (Actually it's 17, 000)
400,000 times 4,000 is 1.6 billion barrels of recoverable oil. At $100 a barrel, thats 116 billion bucks.
Subtract costs of 6 million per well, or 24 billion. That leaves a total profit of 92 billion. CEX share is one quarter of that, or 23 billion.
They own a 23 billion dollar asset, and the stock is worth 22.3 million?
Am I missing soething?