OEX 20.0% 0.6¢ oilex ltd

being cash neutral on operations is not a huge milestone....

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  1. 240 Posts.
    being cash neutral on operations is not a huge milestone. assuming 20 people on an average Indian salary of say $25,000 pa costs $500,000. add 20% for office and incidentals runs the number up to $600,000 pa. At $50 a bbl, that's 12,000 barrels of oil pa, or 33 barrels a day. not really a big achievement on any scale. at $40 a bbl, that's 41 bbls a day. say 70 bbls before tax.
    one might assume that there's some spin being applied based on these assumptions which may not be exactly correct, but gives the big picture.
    to recover the CAPEX over say 5 years, assuming $15 million cost, without depreciation is over 200 bbls a day at a net value of $40 / bbl. assuming the taxes are not applied. BUT tax is at 40% roughly, so 200 bbls goes to 335 bbls.

    adding it all up, 400 bbls per day should be enough.
 
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