Set me straight on this one.  CNE plans to spend 21 M in 2013 to improve incremental production.

 

So when one considers the opportunity cost knowing they are paying 15% on a term loan then we can really value the 21 million expenditure as 21 M + 15% all things being equal....so this really is like spending 24 M in Ecuador.

 

Knowing they receive a tarrif amount of $39.53 per incremental barrel of oil we can calculate that just to break even they would need to produce 24M/39.53=607,714 bopy (barrel of oil per year 2013) or a daily production of

 

607,714/365=1,663 bopd average over 365 days JUST TO BREAK EVEN?