RE:RE:BNE's Decline rate and ARO"BNE's ARO are equal to Cardinal's ARO although CJ produces 21,500 boepd. This figure shows that BNE has lot of wells with little to no remaining value."
For example this statement. This figure doesn't indicate that at all.
The ARO is based on the type curve to project and discount to PV.. BNE's is very conservative relative to actual performance of their wells. Further, the ARO should be compared against cash flow to cover it... againnot simply the quantum of BOE. BNE actually produces more free cash flow per barrell than CJ does. The poster continuallys to only give have truths and partial data - why not also include that althoughCJ produces more than 8,000 boe/d more, they generate less free cash flow?
In fact, on a coverage ability basis, ARO relative to free cash generation, the metric you might like to actually since it looks at a balance sheet liability item to cash flow, BNE's far exceeds CJ's.
BNE has also reached tail points on wells where original ARO calucations, being conservative as they were, have surpassed the date which the PV calcs are based from. Like Becky said, this is a footnote for a reason... many of these obligations are years into the future, and have no cash impact presently.