Look at it on a per well basis. Guess an average cost of $750,000 per well. Emr have 72% (80% of 90%) then take off 20or 25 % for royalties. EMR get about half the cash in for funding the well. So from ~ $6 million they'd get $3 million per well (presuming 0.5 bcf).
So the economics per well is to spend $750,000 up front to end up with $3 million down the track. Financing each well appears to be key but shouldn't be too hard if they can establish a track record. They don't have to have the funds to drill 1000 wells up front, obviously.
Do these numbers make sense do you guys, I'm certainly no expert on this
its good, page-14
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