tax concessions are also a significant factor of course, with Bentley qualifying for an $800 million 'tax break'.
Nov 2013 The North Sea's largest British independent oil producer, EnQuest Plc, will pay no tax until 2018 after its decision to go-ahead with the development of a second new field of heavy oil on Friday.
The ultra heavy oil tax allowance Enquest will tap for its two Kraken fields will trigger two 800 million pound allowances, giving the fields tax relief worth 512 million pounds ($824 million).
The project has 137 million barrels of oil equivalent (boe) in gross reserves, increasing the company's total reserves by almost 50 percent compared with the 2012 year end.
What is the point of multiplying $100 US X 250 million barrels when the RAR clearly states that the NPV10 value is only $8.80 per barrel ? That figure was obtained using Bentley oil at $113 per barrel and not $46 Brent, which would mean that Bentley oil is worth 12% less or about $41 per barrel. Use the per barrel costs associated with their estimates and you will find them above $41. Again, this is over 35 years, not all at once and does not include many expenses. If it were as you say, this would already be developed. Why do you think that this has not progressed at lightning speed ? Your numbers are wrong, simple economics. Sorry if this affects your daily flip but this one is much more difficult to value than what you are preaching.
I think you will find in fact it's you who is mistaken.
The production profile we have shows that we are still economic if Brent was $46.1 per barrel (go to 08/04/13 RAR RNS for full details) $700 million is what we need to take us to that production profile.
When you consider that Statoil have delayed the Bressay Field development because our data shows they could develop the field cheaper, their CEO stated in 2009 they needed Brent to be $70 per barrel, they must wonder how the heck we have done it .
Ugiebear, I'm afraid you're mistaken about the $46/bbl threshhold. It does not mean that profitable operations can be made with Brent crude at $46. What they meant is this, if you produced all the 2p reserves at once, then added the operational expense with development expense, plus abandonment expense, it would equal $46.1 per barrel.
Those figures do not include tax, the cost of financing, debt repayment nor does it take into account all expense that is included in earnings. It doesn't even include salaries. Sorry, you don't seem to be aware of any costs and I guess the reason you were promoting $100 X 250 million barrels. Let's be honest here, good companies don't require that kind of false advertising.
Having hung about dockyards in the freezing cold trying to find out when our rig was leaving etc - surely one of you southern softies can reciprocate by doing a bit of investigating on the way back from Waitrose this morning. Answers please :)
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