You are off! Just crunch the numbers! We know the average boe out put averages about 150 per day. WC said that these wells use total about 350k-500k barrels in the life time.
I would calculate it base on PE per share!
624 well*150 boe per well per day* 365 days*0.10* $70 per boe=$236 million in revenue each year for the company.
Divide the net profit lets say $200 million by the total Outstanding Share Count of 340 million.
200/340 equals $0.58 per share earnings for the PE. Multiple this by 20 which gives a share price of $11.20 per share. This does not count the equity of the hard asset of an extra $2-3 million per well for future recorded revenue over the remaining 7-10 years which would add an additional $3-6 per share in equity.
A simpler way to think about it is a well at 10% Superior ownership averaging150 barrels of oil at $70 per barrel brings in about 400k in revenue for the company per year. So if you had 624 wells times $0.4 million per well equals 249 million per year in revenue give or take.
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