POD1 Net Cash Flow sensitivity to WTI Oil price change

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jurek

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POD1 Net Cash Flow sensitivity to WTI Oil price change

posted on Jun 11, 2008 08:29AM

Some posters ask for it so here it is.

POD1 Net Cash Flow sensitivity to WTI Oil price change

The calculation are based on POD1 March/2008 numbers provided by Management and:

1. $10 change in WTI oil price

2. 9000bbl/d average POD 1 production for the Q2/3/4 of 2008

3. 10,000bbl/d POD1 production in 2009/2010

4. 1% Royalties in 2008, 9% in 2009, 40% in 2010

5. 240 million FD shares

6. Do not confuse the Net Cash flow with the Net earnings which could be 0 to 70% of the net cash flow depends on the accounting strategy employed by CLL.

For every $10 increase in WTI price POD1 Net cash flow/share will increase by:

Q2/3/4 (quarterly)2008---- 1 cent

2008 (annualized)----- 3 cents

2009 (annualized) ----- 4.4 cents

2010 (annualized) ----- 2.8 cents

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