using the figures given in the announcement we get :-
Condensate 22bbls x 30 days x $49 = 32,340
Gas 1200mcf x 30days** x $4.20 = 151,200 Total $183,540 x BUR's revenue interest of 40.32% = US$74,003 / month
All we've been told is that the well cost is under the $US2.2m & BUR's working interest is 50% so assuming BUR's contribution is US$1.0m how long for this well to pay itself back? I do not know operating costs.
** assumes 360 days p.a. of operation??
Can any long term holder advise why, for each well, BUR's operating cost is 50% but revenue is only 40.32%
BUR Price at posting:
0.6¢ Sentiment: None Disclosure: Held
