Second Wave Petroleum Inc SCSZF

RE: Economics??

[vltn59]

In a previous presentation the company indicated it took just over one year to pay back the avg BHL well cost.

The latest June presentation indicated @ $85 net backs in the BHL exceed $60.  Current oil prices around $96.

With 2000/bd production from the BHL that implies $50 million/yr cash flow plus whatever for the lesser wells and ng.  Net debt around $114 million indicates debt/cf just over 2.1x.  $50+ million/yr net backs should be enough to maintain/increase production @ $5 million per well, until mgmt comes to terms with what cpg is willing to pay.