Hi @DavidspadesProbably my fault putting down figures without...

Hi @Davidspades

Probably my fault putting down figures without the accompanying caveats!

$3,650,000

Is based on output of 200 bopd, which is what Beech were achieving.
I think I read somewhere it should be 600-1,000 bopd with Horizontal wells (Horizontal drilling in 2020). so multiple $3,650,000 by 3-5 times ($10m to $18m).

That's just the value of the production from the Flax site! Flax is smaller than Juniper!

We also need to consider if production is done alone or with a JV partner. I also understand there are some royalties payable to Beech as part of the deal - but I may be wrong.

To calculate the MC, you also need to take into account the value of the assets the company holds. So to put a value on the company we got to consider how much oil/gas is in the ground, and how much that equates to once produced etc. So value the asset (inc licenses) and the potential value of those assets etc...





Then there is the Gold Nugget site in Wyoming, USA also, which is not producing due to water found in the facilities. I don't know much about this.

I don't want to get over zealous with estimating the MC of ROG - there's still a lot of work to get to this. But by the end of this year (i.e. Dec 2019) I hope the MC to be somewhere between $20m to $40m = a SP of 2c to 4c approx. Beyond 2019 - I don't want to predict or comment on. Like I say - All IMO, DYOR etc. but I believe this is achievable given the acquisition and approvals.

I hope this helps.
MSN