I have been reluctant to block posters as it enables one to monitor what others are posting and attempt to mitigate their boll0cks and the impact it might have to those visiting this page for the first time but I've had enough and will just block the likes of Kwidz, ct2000 and Sid. Would be good to have along with most recommended posters a list of most blocked posters on the main page of LSE so that people like these will be named and shamed and their posts appropriately dismissed as the innocuous garbage that they are. Alas this is unlikely and despite my blocking I will still have to see their crap on my work computer when I occasionally check in during the day. Oh well...
For any didymusses, below is the latest from FX Energy so can compare real prices with the example given earlier. The current price in Poland in dollar terms are fcast to be 20% lower.
Let’s start with production. During 2014 we produced a total of 4.5 billion cubic feet equivalent, up from 4.4 billion in 2013. The 2014 figure represents an average daily production rate of approximately 12.4 million cubic feet equivalent per day, a slight increase compared to 12.2 MMCFD in 2013.
Our oil and gas revenues were $34.3 million, up 3% from last year.
Perhaps that's why the SP is getting nowhere. It would seem, in my opinion of course, now we have the liability of that find, that we would have been better off not finding any gas, if that is at all possible?
Am I correct in assuming SLE would only get 35% of and production benefit before tax, further production/exploration costs and continued overheads and do they still have to pay back the money due for their proportion of the exploration expenses so far?
If so then it seems it would be less commercial for SLE than PMR under the current oil financial situation.
After company ABC drills a successful gas well producing 1 million cubic feet per day (1 mmcf/d). That’s a thousand thousands, and the price for one thousand cubic feet (mcf) is $5.80 (it will not all be saleable gas but we will ignore that for this calculation) 1000 x $5.8 x 365 = 2,117,000, assuming nil depletion, so accruing to SLE after costs of $1,368,750. Not even worth completing the sum, costs may be lower, even so doesn't look commercial in today's market, guess Palomar may just wait it out, until the oil price recovers.
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