Those are low projections for the price of oil and every increasing projections on transportation costs.  The projections look pessimistic. I know the price of oil is low and not recovering, but $38.89 projected sale price per bbl in 2017 compared to $72.58 actual in 2015? For reference, a quick Google search now looks like 2017 WTI futures right now are in the $44-46 range. And transport price projections just keep increasing per bbl ... $9.74/bbl in 2015 actual; rising to $10.88 /bbl projected in 2017.  Is the transportation company doing enough to renegotiate contracts and reduce prices in this low price industry environment? Yes, it hurts but it is time to change or really find ourselves with rapidly decreasing production (increasing decline curve). Small changes on the edge matter at prices like this. Is the state working the cost issues like it pays 12.5% of some of these costs through the 12.5% royalty?