RE:RE:RE:Charlie Lake Bonanaza + Spending LessIMO, you have to have extreme cost discipline AND be shrewd selling your natural gas (whether hedges basis LNG etc) to consistently make money producing less than 20% oil. Certainly that operating with 10% (or more) royalites, $10-11 op costs, $3-4 transportation, and $3-4 G&A,interest and SBC (Kelt is less though) won't cut it if oil is $75 and natural gas is $3.0.
But when you're producing 50% oil - ie Charlie Lake - its a very profitable business with that cost structure. Even 35% oil generates a nice profit.