Although the oil and gas wells have not been mentioned here a lot, what if they ARE bringing in some dough with that? Seems like there is a total of 9 wells. IMO, @ about $500,000/a well (average cost per well) That is approximately 4.5Million dollars. (might sound about right for KH & team) unless there is a certain percentage say about 30% invested which will be about 1.5Million. An average well can produce income of approx 700,000/year. Doing some simple calculations, This can bring in about 700,000 X30% invested = 210,000/per well X 9 wells = about 2Million/year.
This is, if KH & team are making money on this. You can expect a loss of about 4.5Million dollars if not.Remember, they have not said if this investment was a waste! They also didn't mention if it wasn't one either. All speculation at this point
This can certainly add to bottom line in the end.
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