RE:Ithaca Would Like $100 Brent.........Butcrow you are nuts and so far out to lunch it's unbelievable!!! the only thing i agree with in your last post is the hedging.
you can't extrapolate the way you did for crying out loud. if oil drops to iae's break even point, (whatever that will be) it won't matter if they procuce 30,000 or 100,000 boe/d, they will not make money. lts say they need $70 oil to break even or make money, if oil drops from 100 to 90 that's 33% of their profits, not 10%.
look this is all about shareholders making money here, i'm not sure how much iae will make on stella after you figure in all the capex it's taken and will take to get it up and running, look at all the previous drilling and studies done on it, building of the platform etc, could take a long time to get that money back and if brent pricing doesn't cooperate you may never get paid back. it will be interesting to see what there final production costs end up at once running.
cheers ferret
ps i bought some iae near the close today at 2.35, just for the hell of it, lol. just for a trade mind you and have a very short stop loss on it. and this doesn't mean i'm gonna stop bashing the crow and iae if they screw anything up.