RE:RE:Stella production capacity Sorry Doug, I binned my P&L numbers when the price of oil fell below $60 and the FPF-1 was delayed by a year. Now I watch cash flow and operational issues, Petrofac being a key factor. Ithaca has a good spread of producing assets to deal with any short term North Sea issues. I’m comfortable that hedged cash flows will keep Delek out of the picture near term but I’d be happier to have Petrofac out of the supplier picture. As I said in the earlier post Ithaca may have options to optimise Stella cash flows if Petrofac ever deliver, and I’ll believe that when I see it.
That said, a P&L estimate is easily produced by extrapolating recent Q numbers. I suggest always using the latest DD&A number, remembering it’s a fixed rate, independent of production. Currently, approx $26 per boe and unlikely to change much with Stella on line. Of course the unit cost number will fall with increased production from Stella. We’re a long way from tax being an issue except for the Wytch Farm field. Try your oil price scenarios but to my mind there are too many moving parts right now. Can you predict Ithaca’s future hedging strategy? I can remember current posters here (okay one) complaining about $103 hedging with the spot price at $110. Happy days!
Londoner7