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ALRY - confirmed BREAK-OUT! could be 5x bagger again
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[QUOTE]Originally posted by EnergymanNJ: [QB] I would love to have a ball park average number *all leases included, of how much it cost ALRY to bring up one barrel of Oil , and also to deliver 1 million BTU of Natural Gas to buyer. Them cost production figures are....IMO, dramatically lower then the industry standard. The 30-3 theory. Almost any producing lease asset is sweet, if the can sell for double what the spend to get it out of the ground. Oil sells at an avg $65/bar, nat gas $8 ml/BTU < light future estimates. What we dont spend to bring goods to market goes right to our BOTTOM LINE IN NET REVENUES $$$$$ Say you are being offered a 1.25% net revenue interest in a project for $120,000. For your investment to break even, the well will need to produce a total of $9,600,000 in revenue $120,000/.0125 = $9,600,000. If oil averages $65 a barrel, and I don’t believe it will stay that high, your investment well will have to produce at least 120,000 barrels over its productive life $9,600,000/$65 = 140,693 barrels. You can do the same math for gas or combination oil and gas projects using an anticipated price for thousand cubic feet of gas. I'd rather buy the stock long then a direct interest in a lease.< just me It’s interesting to note that 16.4 percent of all US electrical production is generated using natural gas while 56 percent of all US homes cook and heat with natural gas. Natural gas demand rockets up from November through March each year. The peak auto driving season is during the summer months of June, July and August. The fact that both oil and gas prices are going up is a result of the fact that we and the rest of the world, are using more of both commodities to the point where demand is closing on supply. Since one commodity is not easily substituted for the other the fact that both have been going up in price is a function of coincidental shortfalls in supply versus any direct correlation. Speculation in oil can account for some of the current record prices for oil but the US natural gas supply / demand imbalance is very real and likely to become even more pronounced. That’s one reason why we look for oil and gas drilling investment projects that have a strong gas production potential. [/QB][/QUOTE]
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