the fork - how full is the glass., page-6

Hi DavisC4

• No gas sales from East Oklahoma until December 2009. Refer their announcement 16/07/09 where they say “On track to achieve gas to sales by the end of calendar 2009”.
• Same announcement – 16/07/09 they say “We are on track to have our first ten wells at East Oklahoma drilled, completed and testing within four weeks”.
• Same announcement again they say Continuous drilling and completion activity for the balance of calendar 2009’ and “with continuous drilling, completion and production testing to follow over the next five months”. I have therefore assumed that including the initial 10 well program which will be completed by mid to late August they will drill a further 10 wells which will allow production from 20 wells to be plumbed into the tap by December – I can’t see why not.

I estimate that EOK will contribute only 21% (79% Tulsa) of the free cash to RFE this financial year which is reflective of the absolute free kick the oil at Tulsa has given. The numbers start to change significantly as EOK is ramped up but remember EOK wells have a 20 year life with an annual production decline of ~ 8%.

My numbers are indicative only and might well be less ....... or more ;)

Need to DYOR and its all IMO.

Cheers