Hi Rich more monkey business I am afraid I suspect 11 trades all buys mine at 1.09 @16.19 lol, one was a bed and ISA from 20th . can't explain the drop other than a large after hours trade coming in yet the mm would not quote for 250k weird ;(
* New wells due to come into production in Q4 2014 - including several infill wells on the Company's leases held by production in North Dakota and Oklahoma to maximise recovery of reserves on individual spacing units
* Further participations in new wells and infill drilling with leading operators expected
* On-going lease acquisition and management activity in line with strategy to grow and diversify portfolio
"While we can’t do much about day to day movements in the share price, we will continue to deliver on our strategy and focus on proving up the reserves on our leases".
"how many of the 161 producing have actually been paid for" - ALL of them.
I.e. MAGP is sitting on 161 fully paid for producing wells. The point is that if you sold them you'd get back all the money you have invested in them and some... AS the previous Texas asset sale showed, the 'and some' is in fact 'and quite a lot'.
Sorry, don't have time real off loads of numbers, but as you say the information is readily available for the ND wells, the Jakes for example are ~40% ROI in the first 12months, so a reasonable estimate would be total ROI 36months.
For Mississippi there are also some numbers available, although generally at least 3 months out date, but you can get the basic idea from them. Again, most ROI look to be 24 to 36 months; some come in quicker some take longer.
The thing to remember is that once paid for a well will continue to steadily produce for the next 25 years, meaning it can be sold on as a 'known value' asset to provide somebody with a long term income.
It is also worth noting that only ~15% of the oil is currently being recovered and that over the 25 year life span of the well it is likely that at some point it will be cheaply reworked with the latest technology so boosting the value at minimal cost.
Whilst I'm the first to say that IPRs are seemingly over hyped they do provide an insight into the long term production of the well. I.e. Given two wells with the same initial cost, one with an IPR of 500bopd an one with an IPR of 80bopd I know which I'd rather have.
I agree with that OilM. With the stablised, post-IPR flow comes an accurate per diem rate and therefore repayment time but these are not mentioned much anymore - they used to be a while back and several were only a matter of months. It would be interesting to find out how many of the 161 producing have actually been paid for by now and are therefore in for nothing - a fairly hefty percentage in my view. This is presumably why we have been granted a further $5m facility against proven assets/production - the Bank would have needed those figures for sure so they are out there but, as you say, not in the public domain for 'commercially sensitive' reasons perhaps.
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