Stratocasterca--I'm a little conservative..but here is how I compute it. My apologies to people averse to applied math in advance:
$62.25 Current price per BBL OK Sweet Crude
- 5 Pickup/Tank servicing charge
=$57.25 Net from selling oil
-$22 Conservative...operating costs to extract the oil
=$35.25 per BBL Free Cash
= $77.55 Free Cash thrown off per well per day at 2.2BBL
= 39 days Payback for $3000 servicing then $77.55 Profit per day per well
= $2325+ per month per well profit based on 2.2 BBL per day at the current $62.25 OK sweet price.
119 wells x $2325 x 12 months = $3,320,100 Profit per year once all have been serviced and the servicing paid for out of well production.
Some assumptions...some conservatism...pretty close.
xtrapink
xtrapink
(long, strong and very pink)
