How much oil (condensate) is Kupe producing?
Quote:
Originally Posted by
xafalcon
The future dividend potential will be materially effected by the international crude oil price & NZD:USD exchange rate. Changes in these (up or down) effect income from oil sales, but neither adds cost (except by changing royalties). Both are impossible to predicted with any certainty. Hedging only goes so far in deferring the effects, doesn't eliminate them.
For example. Approx 535,000 barrels of oil sold in the past 12 months.
<snip>
Ok I know my header question is impossible to answer. Kupe has the ability to scale up production if oil prices are favourable. Genesis made them cut back production when the gas hungry "Unit 5" at Huntly was taken out of service for a routine inspection. But my question relates to the long term average extraction rate.
p20 of AR2008 predicts 14.7million barrels of concentrate over the life of the field. FY2011 was the first year of full production, Best guess is that Kupe will last until 2027. So over 16 years, the average extraction rate should be:
14,700,000/16 = 918,750 or 920,000 barrels in round figures.
Why have only 535,000 barrels been sold over the last twelve months?
SNOOPY