Originally Posted by
Unicorn
Sorry Digger, but I think your figures are unreasonably optimistic. It would require the FPSO to be producing at 100% capacity every day, for the whole year - meaning 18.3 million barrels being produced.
Current production is 48,000 barrels a day, and that has always been expected to decrease as the water cut increases. The realistic best case I can see is to average 36,000 barrels a day over the year - which indicates around 24,000 barrels a day at the end of the year. That gives an income close to $200M at current prices (which would still be a fantastic result for a company with a market cap around $300M).
The price of oil, and the exchange rate, over the year will have an enormous bearing on what the final result is. I really have no idea what will happen in either of those areas over the course of the year, but suspect that the sub-prime meltdown will in the end prove to be very detrimental to NZO shareholders. Meanwhile I just enjoy each month that passes with production and prices at current levels.