Is that 1 boepd from each well or both combined lol
Keep in mind the for the Jakes to deliver we need an average of 23.03 bopd to pay back in 6 months, 11.48 bopd to pay back in 12 months, 7.66 bopd to pay back in 18 months and 5.74 bopd to pay back in 24 months.
Therefore we have massive scope to add to our revenues here and pay back original investment (remember also that 'payback' is notional as the wells are already paid for, so revenues received are immediately available for recycling into new wells).
I agree with IAM that we are not going to see any significant, sustained improvement here until final EOY results are published and we declare a profit and self funding. HOWEVER don't count on it. Once we get to 200 wells producing a steady 2 bopd each, we will see production and development opportunities increase rapidly.
I would hope or should i say iamhoping for 70+ total from both the Jake wells, should get that so would be disappointed if less.
And dare i say it, will this actually lead to any lift in the sp given the way previous cracking results have been 'dealt with'. The market just doesn't seem to like these IPR's as perhaps they allow for the perceived decline rates, not the longer picture production.
Not holding breathe on the Jakes re-rating us as the cynic says the markets will react as it was for all the previous production news. But if it wishes to send us higher, then feel free!
HOWEVER, once the full results are out and it is clear to see the REVENUES, the market should take note. And if we have an RNS saying SELF FUNDED, then again the market should take note.
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