Welcome newsIn effect means the company can increase its drilling program in 2023 if management believes the environment is correct. so lets do the math 9rounding numbers).
Current production 3500 boed.(decline at this point probably 20 percent on average).
anounced drilling 3 wells completed by end of May ( decline rate 30percent)
announceed three well program in July (finished end of September, 30 perecenr decline)
possible 3 more wells in september given bank line.
Assume all succesful because field is well delineated. use average of 600 boed ip30
1rst program 1800 boed on exit 1400 boed
2nd program 1800boed on exit 1600 boed
existing 2450 boed on exit
1400 +1600+2450 equals 5,450 BOED
assume oild stays at 70 wti netback probably $40
exit daily CASH FLOW 5450*40 $218,000 annualized $79,570,000
with a potential of an additional (third drill program) annualized $26,280,000
give or take usd 100,000,000.
big questions 1) what are the new EUR numbers
2) what is the effect on reserves if t zone comes in