I have this picture in my head of Ron in a HQ Belmont Ute, its...

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boom or bust

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05/03/15

20:58

Post #: 14868055
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Originally posted by blackhat ↑

the last report I read was that the well was producing 100 barrels a day. at$50, that is $5000 a day. RM called it cash neutral or positive on OPEX which is the cost of a handful of locals.
now you tell me how it can be profitable at $5000 a day covering a CAPEX of about $10 million? from my calculator it says 2000 days to payback. that's 5+ years without considering break even on OPEX. tight sands have a short life, lucky if a well goes for 4 years. and even if it does then it declines fast. this means no profit.
i know what Ron says, but understanding them is vital.
the 77h well was drilled as a gas well, not an oil well. proof of concept merely means that the well can be drilled as per the design concept. it has no relationship to the reservoir. if the reservoir was proved why was there oil instead of gas? if the reservoir were proved, why are there no reserves posted?
there's a lot of smoke and mirrors here. remember its been a year since drilling began.
mr. joatman, maybe you are too keen to believe, but knowing how this oil business is run helps to identify what is not said. i offer these insights so that you don't invest blindly. i have no commercial interest, but having been burnt by bad directors in the past [aka Nexus], i offer insights only. my criticisms of Nexus were similar in voice to OEX, warning of bad leadership. i was proved right. i believe that i am right here also. i aim to improve knowledge, not deramp. i have no interest and as i have said before, i will not touch this stock with a barge pole until the leadership is replaced with competent souls.
the assets are great.
but DYOR, you must take the hits yourself. good luck.
i reiterate, neither well made money or proved the reservoir.
bring on WA, agreed, india is a wasted effort.

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I have this picture in my head of Ron in a HQ Belmont Ute, its going up the great northern highway, it has a 44 gallon drum on the back and a gas cylinder, written on the tailgate of the ute it says.. Canning Basin or Bust...Ron is wearing a cut off sleeveless shirt, he has one arm out the window,..he gives me a wave as we go past each other.

OEX Price at posting: 4.1¢ Sentiment: None Disclosure: Held
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I have this picture in my head of Ron in a HQ Belmont Ute, its...

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