Maybe people wouldnt have to argue if banned people didnt just constantly create new IDs...
No point arguing with you as when you get a rise from me, i would get banned. You would just make a new account no doubt if we get banned.
I am comfortable with the annuals. And as to why I would argue with Fracking... no point as everyone around here knows him from his various bans from various sites. Wonder which merger he will "prove" is happening by sheer weight of posting.
Liggy, dont bother responding as you are now filtered. No point negotiating with terrorists.
You have simply presented the figures in a different way. I have used the NPV calculation included with the accounts, which will include a future price forecast based on Brent futures from which the setbacks can be derived.
You have omitted the fact that the loans have to be repaid so your $19.2m netback is used to repay the liabilities to LO resulting in very little profit to apply a p/e ratio to.
You will not get a 8 times PE ratio as the same NPV calculation shows a peak production of 3000 bopd from current reserves.
If you do the same calculation for drilling rather than water flood you will understand why they have stopped drilling in 2017. LO could not be repaid. A strong indication of no flow surprises with the last 3 drills.
You need to analyse the data in 3 different ways to ensure that they all badly match.
The total liability do not require a lump sum payment on day 720, the liability is repaid 720 days after the initial spend and hence aligned with production. 12 month terms were not met and rolled forward into 720 day terms because RRL did not meet targets and could not pay.
Rob Think you are being a bit hard on fracking. The guy's just got mixed up and it is FRR that he is talking about and he is just about spot on with his .07 per share, although I seem to remember when FRR had a much higher SP
That's some of the worst accounting I've ever seen. From the 2016 operations update it clearly states:
OPEX: $11/bbl Royalties: $13/bbl Netback: $16/bbl
So at $50/bbl we roughly get:
OPEX: $11/bbl Royalties: $16/bbl Netback: $23/bbl
You produce 2500bopd or 0.91 million barrels a year. Multiplied by netback that is $19.2m netback. Say it is $3m fixed costs and at most $3m annual finance costs over well life that it $13.8m profit. So $0.18 profit per share or $1.45 at 8 P/E.
That it 1.17p with value increasing considerably as output and oil price rises further.
Your 0.07p share value will be earned in less than 6 months. Hope you never did any ones books.
I think ch one man crusade to highlight the dispicable manipulator trader and all round bad egg that buys at 5 quid a pop.. Has saved scores of would be investors from investing in rrl.. No'one should underestimate this selfless act. certainly not yogi bears mate, crunchieman or a grumpy scot.
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