SSN 0.00% 0.2¢ samson oil & gas limited

Production Tax Break coming?

  1. 5,820 Posts.
    lightbulb Created with Sketch. 232
    A dollar saved is a dollar earned (certainly as far as EBITDA is concerned and a potentially saving for the life of the well....

    ND presently has 11.5% production tax (oil extraction tax 6.5% + gross production tax of 5%), higher than most states.

    "The extraction tax has a built-in tax break if oil drops below an inflation adjusted limit set at $55.09/bbl. for 2015. If the realized price of WTI is below that number for 5 consecutive months, then the 6.5% tax is dropped for the first 24 months of the well's life. After the 24 months are up, the tax is reinstated, but at a 4% rate for the well's life, not 6.5%. Keep in mind, a well will produce for 35 to 40 years, so the effective tax break would cover that period of time. The 5% gross production tax is not affected, and will continue throughout the period regardless of oil price."
watchlist Created with Sketch. Add SSN (ASX) to my watchlist
(20min delay)
Mkt cap $3.283M
Open High Low Value Volume
0.0¢ 0.0¢ 0.0¢ $0 0
SSN (ASX) Chart
GET SUPPORT arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.