RE:ARX = P/E of 26, no forward guidance, No thanksReally, please keep your discussions focused on issues associated with Tourmailine, and lets discuss Tourmaline and a company, and leave ARX issues for the ARC board.
The cost of those Royalities, is going up directly with the price of the commodity, 81 U.S. dollar oil is about 102 dollars canadian and condensate about 105 dollars canadian.
Royalities
Topaz was recently give on 2.5 % royality on oil and condensate and TOU may produce 40,000 boe a day of this liquids in q3 and likely going forward.
40,000*.025 = 1000 boe of production, with zero cost associated with it.
1000 boe *100 dollars/boe = 100,000 dollars/day oil royality.
9 million dollars a quater or 36 million a year in oil royalities.
Royalites are like a intest only loan payment that never go away, and with TOU 2% borrowing capacity they could borrow 1.8 billion dollars and pay the same amount as they are on these royalities.
IMHO