Sefton Resources Share Discussion Threads

[redhill] 17/2/2008 21:00

tim00

They have to,in the year they were paid for.Maybe hidden in admin?

[tim00] 17/2/2008 19:56

yes, wages and salaries. I too am only referring to current costs, not capital spending on drilling and storage facilities. Those don't appear in the profit and loss account.

[redhill] 17/2/2008 19:35

Well yes he is not referring to all overheads such as drilling and providing storage facilities as they are not neccarily re-occuring.Mainly salaries and wages i should imagine.

[tim00] 17/2/2008 17:50

redhill, they'd have to produce a lot of barrels! Admin etc is about $1.3 mn per annum. It will be some time before they produce 500,000 barrels per annum. No doubt JE is referring only to a small part of total admin costs, but for clarity it's better just to lump all overheads together since that is what the oil revenue has to cover.

[redhill] 17/2/2008 17:42

tim00

Why shouldn't admin costs be $2.50 per barrel?

[tim00] 17/2/2008 16:54

"Our wells are producing 200 barrels of oil a day at $50/barrel. Our extraction costs are $7.50/barrel and administration overheads add another $2.50/barrel, it's just a matter of time before we reverse the fortunes of the company.....we are literally running at a profit as we speak, vast improvement."

Don't understand the reference to $2.50 per barrel admin costs, more like $20. Add $10 for lifting costs to give total cash costs per barrel of around $30. With Sefton oil prices currently over $80, cash profit before tax is around $50 per barrel, ie $300,000 per month.

Regarding whether the new Snow wells are wildcat or development, they are very close to an existing, though idle, Snow well which was in production for very many years. The language used by JDM in the latest RNS was very confident that these would be producing wells. I'm fairly confident that they will all be producers, but not sure how much. I think relishing argued that because these wells are close to Yule 10, they could have similar flow rates. We'll see, I would hope they'll make an announcement after two wells have been drilled and flow tested, so possibly on around 26 Feb?

[goooba769] 17/2/2008 15:18

I still wonder if we will get bought out just before we ramp up production with new wells, steaming and CBM?

[krisg] 17/2/2008 12:36

Quote from JE at the start of 2006

"Our wells are producing 200 barrels of oil a day at $50/barrel. Our extraction costs are $7.50/barrel and administration overheads add another $2.50/barrel, it's just a matter of time before we reverse the fortunes of the company.....we are literally running at a profit as we speak, vast improvement."

And to think oil prices are almost double and we should soon be getting atleast 250 barrels a day without steaming

Good times ahead

[redhill] 17/2/2008 10:59

vavoom2 is showing all the classic signs of being invested here once and losing some money.The only way he can justify himself now is to try and run down anything positive the company do instead of just moving on.

[jellyman2] 15/2/2008 17:31

cleaning out CHICKEN pens lol

[california joe] 15/2/2008 15:51

Never stops going on about it Rel!

Vav, that job of yours..........................................

[relishing] 15/2/2008 15:19

I agree :)

[deanroberthunt] 15/2/2008 15:13

are you my anti-matter?

best to have both a robust successful drilling/steaming programme and long term investors.

[relishing] 15/2/2008 15:06

Exactly. And conversely, not having institutional support doesn't prevent you from being successful.

[deanroberthunt] 15/2/2008 15:04

Relishing....just because you have institutional support doesn't protect you from drilling dusters (re: SEY)

[bobbyg2] 15/2/2008 15:01

MT

spot on!