uneconomical, page-57

davo22
Thanks for the link, I can see where you got the $2.50 from.
The site you quoted shows $2.58-2.65 for Feb 23 whereas the site I used shows $2.90. Don't know why there is a discrepancy, but it still works out to more than the $1m you quoted. Also the Feb prices averaged about US$3 from your site. So I stand by my A$2m

A far as the economics of Marion's assets, all we have to go by is the break even figure they quoted last AGM of 7.5mmcf/d. Gas prices were higher then so say 10mmcf/d now. Their current cash burn includes a lot of development, Oman drilling etc. They claim they can get to above 20mmcf with the wells they have, if they did that, it would certainly be economical. In the 1950's & 60's the wells produced at very high rates, no reason why they can't now.

My opinion is they are targeting their efforts to proving their assets as per the quote from JC in my last post. As shareholders for sure we'd like to see production, but this company is officially for sale. Sale prices are dependent on reserves, so I say do whatever you can to get the best reserve figure.

Notice that most of the CC production came from 2 resurrected wells. Oman 2-20 (not to be confused with the new oman 10-29) was drilled by the previous owner in 1995 but never produced until last November. I can only guess they got this well working along with Fuel-8 to add to the upcoming IRR

One last point, when PES was 50c a year ago, would you have told their followers they are wasting their time - don't even produce etc. They still don't produce and the sp is $8.50 because of their reserves - not production.

Marion is speculative, no one will argue that, if you want a sure thing go buy Santos.