coal to gas, page-26

618, I appreciate your coments so much, but your are so conservative re Rayburn - in fact more conservative then the BOD ... (perhaps I'm responsible for the "bluesky" in this forum ... ;-)

please allow me three remarks on your thoughts

[...]every 100BCF implies of net value of 68mn to STX, or 19cps[...]

in the current corporate presentation we learned that every 100BCF should add a potential value per Strike Oil share of 26 - 31 cent (based on NPV)

[...]So based on a fairly reasonable assumption of a minimum of 200BCF of discovery (relying on their quote of 'multiple of 100 of BCF')[...]

my personal view is, that a CEO wouldn't use the term "multiple of 100s BCF" if he actually expect only 200BCF ... I think this should mean, he expect at least 300 to 400 bcf ...

Therefore I think CEGF should have at least a value between 78cps (300bcf and 26cps per 100bcf) and 124cps (400 and 31cps per 100bcf).

So I hope you guys aren't expecting an announcement of 200-300BCF first up. It will probably be closer to 100BCF to begin with, and then subsequently increased as they drill and successfully prod test more wells in different parts of the field.

Based on the production history of D1, D2 and GF1, the flowrates of D3 and GF2 and the results of the wireline logs of GF3 and the 3d seimics (of course its a guess, but I think all this data will be used in a initial ressource modeling), my personal expectation is something around 100BCF as a proven 1P figure and something in the range of 200 to 300bcf as a 2P result

I think the two new step out wells are a hint on their ressource assesment strategy. It seems they are planning a two step process: after the initial results from the current wells, they would be able to expand the figures dramatically, if D4 and HGU1 comes in at the Middle Wilcox.

please don't blame me for ramping but I'm much more optimistic about the success and value at Rayburn/CEGF ...