Raider76:


But it really doesn't make sense in today's digitized business environment to lock up people's money for so long. They are behaving like the days when they had to write and mail physical share certificates for the bonus. If you can declare dividends and credit people's accounts in a month why not shares into CSCS accounts? In the case of UCAP they have already used the N6b they got from the retained earnings through the bonus issue to set up their UCEE.Mfb, leaving the shareholders hanging. It is unfair.

Can shed more light on the 6bln you mentioned in your last sentence for Ucap.

ositadima1:


Based on the link posted by Mcy56 (she leaked the forward documents not me incase you are prosecutor ), does this make sense? Am I missing something?

Good attempt but unfortunately GROSSLY inaccurate.

* Peak Oil production was not 100,000bbls/day. Should have been reported as 100,000BOE/day. Also, Peak production can't be used for forecasting.
* Based on point above re BOE, you can't multiply this figure by $76 (the price of oil).
* Gas production figure is wrong. Don't know where that came from. Oando produced c. 31,912,680 MMBtu of gas in 2023.
* Average realised price of gas in 2023 was about $2 per MMBtu. Note - Futures contracts are usually used hedge commodity price risk.
* Your annual revenue was therefore grossly overstated which throws off the rest of your calculations.

However, I commend you for this intellectual exercise.

Things to note:

Gas:
1000Scf = 1Mcf
1000Mcf = 1MMcf
1000MMcf = 1Bcf
1000Bcf = 1Tcf

BOE (Barrel of OIL Equivalent)
1BOE = 6000Scf or 6Mcf or 5.8MMBtu (approx 6MMBtu)

Oil
1BOE = 1bbl (basically oil quantity needs no conversion. Unlike gas and NGLs, what you get is what it is)

So when an Upstream company reports production numbers, they usually refer to BOE to capture Oil, Natural Gas and Natural Gas liquids. Also, you would often see Oil companies qualify an oil well or OML by the proportion of Oil it produces e.g OML ABC producing 70% Oil (that is the % of oil in the BOE).

Streetinvestor2:
On a serious note @ osita.That profit you posted from that revenue can not be right. Which kind baboon dey work monkey dey chop financial statement.And the 15 is not even right for cost.For naija it 45 and above.

Production costs per BOE based on AUDITED 2023 annual reports:

Seplat - $10.4/BOE
Aradel - $21.0/bbls (Reported in bbls so refinery costs included. About 33% of crude produced feeds their refinery)
Oando - TBC

This is the fact of actual production cost. However, there are other taxes and royalties that apply in Oil & Gas production which is technically not included in determining cost of production. It is an industry standard the world over. It is technically incorrect to sum up all taxes, royalties to determine the cost of production.

As for Nigeria's interest in JV especially share of production, the country has the RIGHT for up to 60% as per the PIA.

https://www.morganlewis.com/pubs/2021/12/nigeria-overhauls-its-oil-and-gas-laws-with-petroleum-industry-act

Spot on 👍🏾

Omooloriredade:


Production costs per BOE based on AUDITED 2023 annual reports:

Seplat - $10.4/BOE
Aradel - $21.0/bbls (Reported in bbls so refinery costs included. About 33% of crude produced feeds their refinery)
Oando - TBC

This is the fact of actual production cost. However, there are other taxes and royalties that apply in Oil & Gas production which is technically not included in determining cost of production. It is an industry standard the world over. It is technically incorrect to sum up all taxes, royalties to determine the cost of production.

As for Nigeria's interest in JV, the country has the RIGHT for up to 60% as per the PIA.

https://www.morganlewis.com/pubs/2021/12/nigeria-overhauls-its-oil-and-gas-laws-with-petroleum-industry-act