Speculating here...
Q4 2021 should be similar to Q3 I think they should be able to turn a small profit again...
Q1 2022 and onwards is where it gets juicy imo…
Just for the sake of it...lets run a bullish scenario. ...
Canadian blends for high grade is sitting at USD105- USD110 at the moment … CAD140/ bbl… who knows if they are going to stay there, but lets crunch the numbers…
Lets assume they are able to produce similar volumes to Q2 n Q3 2021 (2110 n 2126 boe)
Operating cost (average of last 3 quarters) is $36.39 per barrel
Lets use a royalties 3.5% of $140 …$4.9
You get a netback of $98.71 * lets say 2100 boe …you get $207,291!! S&G are minimal lets round it to $50,000 to be conservative…roughly $150,000 back in cash!?!
Assuming the prices stay up and my assumptions are correct… this would be a cash cow??
Hmmmmm
Please let me know what you think!
GLTA only my opinion