I too have been looking at potential cashflows for Oyster Creek, Garcitas Ranch and NT (using conservative resource estimates). Garcitas Ranch in particular blows my mind in potential cashflow over 2008-2010. Just a pity AZZ only have 23.5% of it.
The info I have suggests that they may drill development wells following Harrison and Scott on Oyster Creek. This would enable Oyster Creek to produce at close to 20Mscfd + condensate.
In relation to New Taiton, the resource varies from something like 40bcf to 120bcf........that makes estimation difficult. Other factors are: capex per well is high, It is close to existing infrastructure so time until production should be low, a second prospect (to be drilled soon) could have a similar impact on cashflow/share price.
On the exploration front, success at the Shaeffer deep well (potential 100 - 200BCF) will be necessary if Management's $500,000,000 market cap target is to be under threat by the end of calendar year 07. We could soon see some activity back at Kenedy Ranch too.
Keep up the good work AZZ!
AZZ Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
