FFD funding (Thinking a loud)2 Feb 2020 10:01
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.
Lets hope they go for 100% ownership.