stairway to heaven, page-13

Like you Stapleman I'd rather not loose production but with PV in the wings its a possible to prove up and sell (part or all) of Paloma and put those funds back into developing the 100% owned PV as a mainstay of the production base.

Paloma as a field development has both a cheap and an expensive development cost. The small wells like P-3 cost under a million so developing to the 6000ft level is likely to be cheaper than NSA. But as they are gas wells and gas prices are low they are probably not going to be the mainstay of a field development.

However the deep wells at $5M a pop will ultimately put a break on field development. Paloma could self fund but this would be at the expense of time taken to get to a fully producing field. And that may not be a bad thing depending on the IP of the current wells and the natural decline rate.

If testing at the shallow PV field brings good results it may be a better option to prove up Paloma and sell it and then divert some of the funds to a full field development at PV.

I guess it will all come down to cost/reward at the end of the day.

Who knows what will happen but they will certainly have a lot of options.