OK, a little bored today. I decided to some math regarding the potential income from the existing wells . Oil closed today @ $56.30 per barrel. PPTL claimed that, “gross cash flow from these two wells could exceed $70,000 per month at current commodity prices.” This statement came from a press release dated October ’08. At that time oil was at $68.50 per barrel. So, here is the math:
$56.30/$68.50 = .822 x $17,000 = $57,540 per month
So, they could, potentially be making $57,540 per month off the existing wells yet they can’t raise enough money to tie in the wells? That is $700,000 per year income sitting in the ground at the “current” commodity prices. Why Bruce?
This makes no sense to me. What could it possibly cost to tie these two wells in? They are already drilled and appear to have production casing. Are we talking about laying some pipe? Is that really all there is to it?
Greg
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