Replies to post #56510 on Bayport International Holdings Inc. (BAYP)

[MommaSaid]

That is the release from last week, I still think we get NEWS this week!

[barrystyle]

Working Interest and Net Revenue Interest.

I am no oil and gas expert, so I researched what exactly these are.

Correct me if I am wrong but, Working Interest means Bayport owns 5% of the well lease and is responsible for 5% of the operating costs.

Net Revenue Interest means Bayport collects 3.75% of the Revenue.

20 bbpd initially, so maybe 10 bbpd if it produces long term.

10bbpd x 365 days x $91.6 per barrel x .7 (would pumping stop for the winter?).

=$234,000 revenue x 3.75% NRI = $8,775 per year, minus 5% of the operating cost.

Since they will have a number of wells, I have to believe Bayport is making enough money to grow. I just don't know what that means for the share price.

Also, who has the other 95% ownership of the lease?