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RNS translator “The cost per bbl is dependent on the production rate because the majority of costs are fixed.” Fundamentally this is correct although I recollect that Bluewater’s renumeration is subject to variations in oil price and or production rates. There is obviously a poo dependant minimum production level at which the Company can continue to generate profit. Based on recent production figures, poo and the cash accrual during the last quarter I reckon they need to produce at least 5.6k bopd with poo at 68$ to break even. When you read the Companies cash generation predictions, they are saying that they expect to produce nothing in the next 12 months which can only mean they are taking the extremely pessimistic view that production will drop of rapidly. Also they are using a much more pessimistic figure for poo, for example at 50$ they would only need production to drop to7.75k bopd to reach the break even point. If production could be maintained for the rest of the year at 10k bopd then with the current oil price they would have 205m free cash by the year end. When you consider that the bondholders have been collecting interest at 7.5% over the last 3 years they will suffer no net loss on the $50m relinquished in exchange for 95% of the Company. The shareholders have been screwed and the BoD are responsible. AK suspects a motive. Either that or they are totally lacking in entrepreneurial management skills.
"The cost per bbl is dependent on the production rate because the majority of costs are fixed. So you can’t go back to when it did 20,000 per day and say it was $25 per bbl then because it doesnt work that way."
Utter stuff and nonsense, Nigel, and I suggest you change your hardhat colour back to green as it once was on a certain website before photoshopping it yellow. I have a long memory...
'Uplift cost' is utterly irrespective of production quantity. OK, it might be slightly affected by the amount of fuel-oil used by the FPSO, but hopefully the FPSO is now running on produced gas via the turbines, per plan, but the BoD haven't even had the politeness to inform us about that.
Slitty The problem is that the production guidance figures are rogue BoD produced and cannot be relied upon. Production will exceed those figures A further problem is that you, MeBladder & Transmitter are rampers paid to agree and reinforce whatever drivel each other posts
Aduk The cost per bbl is dependent on the production rate because the majority of costs are fixed. So you can’t go back to when it did 20,000 per day and say it was $25 per bbl then because it doesnt work that way. By extreme example, if it was producing 1000 bbls per day would the opex Capex and G&A only be $25, 000 per day -clearly not... if you want to discuss cost per bbl, you could at least try to understand how it’s calculated and Huw it changes ...
Interestingly (and to my mind rather tellingly), the latest CPR from ERCE does not give a figure for 'uplift cost per barrel'. So one has to go back to old documentation for that, but of course if the current BoD is to be believed, nothing in years of previous work actually can be believed !
But previous estimates gave an uplift cost (all included) at around $28 / bbl. (Though might be 28 pounds sterling, in which case apologies, but can't be bothered to check.)
Of course, maybe the new BoD might issue a new estimate, saying it's $70 / bbl, that all previous estimates were wrong, and that they're working at a loss, to bolster their attempts to trash the company which is paying their own wages. Nothing would surprise me.
RE: Revenues and profitsToday 18:42 "Tranny & SlackyBladder The PInky & Perky virgin act doesn't suit you The village idiot know one can feed highly paid professionals whatever cherry picked date & financials you want and they write report on what is placed before them Costing Hurr $45 to produce a barrel of oil - what a crock of cr*p....!!))"
With another of your many examples of childish immature language like the one above you wrote tonight it doesn't take a genius to figure out who the village idiot is.....
Here’s a clue if you’re struggling. Take the daily costs and divide by the number of bbls produced... Cost $440000 per day, average bbls produced over the next 15m 9600 bbls /day... happy hear your analysis....but presume you’re still not answering questions?
Tranny & SlackyBladder The PInky & Perky virgin act doesn't suit you The village idiot know one can feed highly paid professionals whatever cherry picked date & financials you want and they write report on what is placed before them Costing Hurr $45 to produce a barrel of oil - what a crock of cr*p....!!))
Senseman clearly is totally lacking in sense just like several others who just can't accept what's in black and white and the reason for that is they hold onto this illusion the whole thing from start to finish is a scam. It's turned out to be one big failure as a business because they simply took on too much debt and the man in charge at the time made catastrophic errors in interpretation of the data which led many to believe in the sheer amount of oil down there. The bubble on that interpretation was finally burst further down the line but by then it was too late.
Capex $22mm Opex $153mm G&A $19mm Interest $20mm over 15 months Add all that up and its $431,000 per day to run the system, at 9600 bbls/day average each barrel costs $44.90 to produce. Its just maths...
Here are the figures from the presentation put in a form everybody should understand: Total Capex/Opex and G&A from Q2 21 to end Q2 22. $194,000,000 plus $20,000,000 interest payments Average production rate for the WHOLE period 9600 bbls/day. Net Revenue i.e Gross revenue minus the above at $60 is $45mm, $65 is $66mm, $70 is $88mm, $75 is $110mm Even $75/bbl doesn't get you there. The cost to produce a barrel is $45. This is before you deal with abandonment provision and early termination fees etc... This isn't rocket science... not auditors would sign off on this...