gas shows and my 7 cents worth, page-19

Dargie,

Agree wrt sales price, plus with poo relativity upside.

Not sure about CAPEX, initial thought was far too high, but...they will need dehydration, possibly hydrocarbon dewpoint control, hopefully no other treatment. The big capex ticket will be for compression as the wellhead pressure initially modest and eventually they will want to draw right down (as I assume there is no aquifer pressure support).

Regardless I suspect "initial" capex closer to your $5mm, than $20mm, and the rest can probably come out of project cashflow.

I am sure this current campaign will not be the end of reserves build, however you've got to expect that this campaign will have gotten a good slice of the potential. With infrastructure in place as the fields decline I guess they will keep drilling down to sub 1 bcf targets given the drilling economics.

All very speculative atm, but the market has been pricing nothing whatsoever in, in a period in which it should be rerating on Selmo income alone.

If OEL want to give equity away, fine by me for IPM to increase.

EL