Can hurricane keep going with 100% ownership at Lancaster and go for FFD or next phase of development ?
Let's say hurricane is pumping 35k in 2022. Will this generate enough cash flow to fund next phase of development?
Development time-frame 3.5 years, Assume 35k net production and assume profit of $20 per barrel 20*35,000*365=$255,500,000 per year multiply that with 3.5 years of development time-frame that gives $894,250,000
We don't know the cost of next phase of development for Lancaster but above seems to be a good sum.
I dont know the details of SDX but recent RNS state: "Management estimates that approximately 1.3 to 1.9 bcf of gas is recoverable from the horizons encountered by the OYF-2 well, which will be tested in February. "
If they have only 1.9 bcf at max estimate then no wonder share price did not go higher.