GREY:VFGGF - Post by User
Comment by
ofirmeon Mar 03, 2014 4:40pm
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Post# 22274670
RE:wow incredible
RE:wow incredibleIf your peak initially is about 150 and you have 70% decline in the first year you have 45 at year1.
if you have 35% decline in year2 (I take extreme numbers on purpose), you will end with 30.
Waterflooding should yield 150% increase within 12 month - 24 month with a slower decline
later on. 2.5 x 30 = 75 (based on conservative numbers).
The only comparison with Arcan is about the concept of waterfloofing and the fact it does increase
production and not only slow down decline rates (to about 25% / year) and multiple cycles will
be done.
As far as royalty rates, they are not even close to 40%. I think it is somewhere around 5% for
horizontal drillers and the company is very far from having to pay income tax (for better or worse
the company has a very large pool of investments that need to be returned - amortization of oil
and gas investments is quite rapid).