RE:RE:RE:Fair price and future of PTA with Brent Crude at 60-65?Don't forget about $10 of G&A per BBL quarterly.
Don't forget Brent is at $66.50.
As Llanos production declines (lighter, higher priced oil) and Putumayo is a larger percent of their production, their differential will grow. Yes, it's all referenced to Brent, but what's been missed/ignored/not understood especially by Perdika is Putumayo are lower grades of crude on average and are discounted to Brent.
Corporate cash flow netbacks will be in the lower $20's.
Wells are also being cut by regional players, and PetroAmerica releases guidance in January. We aren't going to see the same guidance in 2015.
Let's not forget that we should be looking at net working capital instead of the cash simplification. Company has $21.5 million of positive working capital as at Q3. They are spending $17mm on Langur well, pay 100 for 50. To be determined if production generates enough cash flow to build cash in the quarter; I'm not convinced it will.