GulfSlope Energy Inc (GSPE)

[smith199]

Louisiana Light up +0.2% @ $64.21/bbl
December 16, 2019 Wholesale Petroleum Spot Price.
Gulfslope used $55/bbl in their NPV10 calculation for their Prospects.

This is a 16.75% increase in the EIA.gov’s Wholesale Spot Petroleum Price of $64.21/bbl, and Gulfslope’s flat-rate price of $55/bbl.

At a 100% Working Interest
Gulfslope Prospect’s BOE NPV10’s off their 2019 Presentation are:
$3,300,000,000 NPV10 for the Corvette Prospect
$510,000,000 NPV10 for the Anadarko Prospect
$4,500,000,000 NPV10 for the Tau Prospect

At 100% Working Interest
A 16.75% increase would have the following “additional amounts”:
$552,750,000 for the Corvette Prospect
$85,425,000 for the Anadarko Prospect
$753,750,000 for the Tau Prospect

Price per barrel is a variable in the Prospect’s Profit Margin calculation, and any price increase, as you can see, can be material in a well becoming “Commercial”.

Also, Oil & Gas Offshore Operators are at an advantage due to oil prices being below $100/bbl. There is a significant decline in overall drilling costs, since there are fewer Operators in the Gulf of Mexico. Lower Operating costs increase Profit Margins making a well more viable for production.

Based on Gulfslope’s Timeline once the Corvette is in Production, the price per barrel is anticipated by some analysts to be higher than it is currently.


Smith

Sources:
Gulfslope’s 2019 Presentation
EIA.gov






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