Replies to post #10090 on Black Dragon Resource Companies Inc (BDGR)

[Spunkyknight]

"NRI is "Net Revenue Interest".
Say 1,000 bbls of oil is sold at $80. Gross income = $80K
Let's say your royalty and overrides are 25% - a bit on the high side but makes the math easy.

So, your NRI is 75% (100% - 25%) and your gross income is 75% of $80K = $60K.

Out of this you pay all the bills. The higher the burdens (lease royalty and overrides) the lower the NRI. Higher or lower NRI is accomplished through having more, or less, lease burdens. No matter the NRI, lease operating expenses remain the same, all else being equal."

Thanks, Local. This is exactly what I was looking for. Now can everyone out there do the math?-

REMOVE LANZA OVERRIDES and you get a better return on your NRI.

OPTIMIZE WELLS AND REDUCE MAINTENANCE and you lose less to that kind of overhead.

Dragon can be and IS a profitable company being leeched dry even with the inefficiencies of the current regime and methods. Imagine what it could be without the inefficiencies and Lanza. So the question is, will people buy in if Lanza is gone?