Jul. 26 at 1:29 PM
$EONR @Yellowcake45 It would seem I struck a nerve. You have thus far ignored the fact that in the last earnings call, Evolution noted they were delaying the next tranche of wells with Pedevco (that would be 4 wells in the San Andres, similar to the tranche they completed last year). The reason was poor economics with crude under
$70. Pedevco's website has a presentation. Look at the slide for San Andres. AFE is
$3.75 million. PV-10 is, yep, you guessed it,
$3.75 million. Do you even understand what that means? I'll explain it for you.
PV-10 is the Net Present Value of the future cash flows from the well discounted at a 10% rate per annum. With Eon's cost of capital likely being near 10%, I just don't see them pursuing this. Also note, the PV-10 was with oil at
$70.
