RE: RE: RE: MDH - Fantastic Results from Rost15 Dec 2025 14:35
Per AI
While a precise annual net profit figure has not been published by the company, we can estimate the operating profit for the Rost 1-26 well based on the previously discussed revenue and cost projections.
Estimated Annual Operating Profit (at 250 Mcf/day)
The estimated annual operating profit is approximately $673,000, which includes the revenue from helium sales and accounts for the main operating expenses and the significant farm-in payment obligation.
Here is the breakdown:
• Annual Revenue (Helium): ~$1,377,000
• Annual Operating Costs (Estimated): ~$78,000
• Annual Farm-in Payment: ~$626,000 (initially)
• Estimated Annual Operating Profit: ~$673,000
Breakdown of Costs
• Operating Costs: These are estimated to be relatively low:
◦ Electricity: $5,000/month = $60,000/year
◦ Site Inspections: $1,000/month = $12,000/year
◦ Deliveries: This cost varies, but assuming around 104 loads annually (250 Mcf/day / 160 Mcf per load * 365 days) at $500/load, it's roughly $52,000/year.
◦ Total Operating Costs: ~$124,000 (My previous estimate was slightly off, this is a better calculation.)
• Farm-in Obligation: The company must pay at least 50% of its operating cash flow per month from the Rost well to Scout Energy until a $900,000 balance is settled.
◦ Annual Revenue: $1,377,000
◦ Annual Operating Costs: $124,000
◦ Operating Cash Flow before farm-in: $1,253,000
◦ Minimum Annual Farm-in Payment (50% of operating cash flow): ~$626,500
• Estimated Net Operating Profit: $1,253,000 (cash flow) - $626,500 (farm-in payment) = ~$626,500 initially.
This net profit estimate does not include potential additional revenue from NGLs or Bitcoin mining operations, nor does it factor in corporate administrative expenses or taxes, which Mendell Helium reports separately at a company level.
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