RE:RE:RE:RE:An observation today....If I may.....
Let's say they (per BOE) get similar field results in Q4 to Q3.
price = 34.19
royalties = (7.18)
opcosts = (20.30)
Netback = 6.71
Now, even with all their cuts in G&A, in Q3 it was $8.11/boe, but remember, it was based on 748 boepd. In Q4, it will be based on 650 boepd or so. So if G&A is now in that $558K/quarter range go forward, that's now $9.33 per boe.
So the field netback with G&A taken off, results in negative cash flow of $2.62/boe.
Quite simply, no matter how much these guys have cut, they ARE STILL A HIGH COST OPERATOR. ONLY HIGH PRICES WILL ALLOW THEM TO BE SUSTAINABLE. Many can operate in this low price environment. Toro, even with the recent bump in prices, can't. It's as clear as day. $50 oil isn't going to be enough for these guys to survive.