Re: POD1 Net Cash Flow sensitivity to WTI Oil price change

Welcome to the Connacher Oil and Gas Hub on AGORACOM

Connacher is a growing exploration, development and production company with a focus on producing bitumen and expanding its in-situ oil sands projects located near Fort McMurray, Alberta

Reply New Message

Prev Message Back To Forum Threaded View Next Message

Knotmeter

Rank: Mail Room [?]

Points: 92 [?]

Votes: 7 Score: 2.4 [?]

Your Vote:

Please Log In to Vote

Did you know? You can earn activity points by filling your profile with information about yourself (what city you live in, your favorite team, blogs etc.)

Re: POD1 Net Cash Flow sensitivity to WTI Oil price change

in response to

POD1 Net Cash Flow sensitivity to WTI Oil price change

jurek

posted on Jun 11, 2008 02:17PM

Jurek,

If you take the 2,3 and 4th quarter production for Pod one at 9000 bbl/d. A $10 increase in Oil price would be .10 a share.

9000 bbl/d X $10 x 30 days X 9 months = $24,300,300

$24,300,300 / 240,000,000 shares = .10125 per share.

How are you coming up with 1 cent per share for the rest of 2008 with a $10 oil price increase?

I know there will be some royalties/taxes taken out, but what other costs are incured on the $10 price increase. The cost for transportation and natural gas and other expenses were already accounted for before the price went up $10.