Back of the napkin calculation Assuming the rem
Post# of 9
Posted On: 05/13/2015 4:43:29 PM
Back of the napkin calculation
Assuming the remediation on the first two wells are successful (26.1% WI) and the successful drilling of the wells 3 and 4 (50% WI) and the wells flow at the average for the area (30-50 BOPD), say 40 BOPD at $60 oil Axiom would receive net cash flow of about $60,000 per month from the sale of the oil.
On average the wells produce 50,000 BO for the life of the wells. For 4 wells that would give you a gross value of about $1 million. We have identified 70 drill locations of which we are a 50% interest. Of course, this is all just back of the napkin calculations and a reserve report would need to be completed to give a clearer picture of the value of the play.
Assuming the remediation on the first two wells are successful (26.1% WI) and the successful drilling of the wells 3 and 4 (50% WI) and the wells flow at the average for the area (30-50 BOPD), say 40 BOPD at $60 oil Axiom would receive net cash flow of about $60,000 per month from the sale of the oil.
On average the wells produce 50,000 BO for the life of the wells. For 4 wells that would give you a gross value of about $1 million. We have identified 70 drill locations of which we are a 50% interest. Of course, this is all just back of the napkin calculations and a reserve report would need to be completed to give a clearer picture of the value of the play.
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