hey ted!, page-39

Hi EL,

My only fond memory of Hardman was the final takeover.

The interesting thing about reserves is they are tied in with the economics of extraction costs versus market price.

In entropy speak EROI - energy return over energy invested.

EROI was sky high for the gushers of Texas.

Valid to compare reserves revision with extraction difficulties, but CVN could emply some cheap Thai locals wandering around the coutryside till the cows come home drilling hit and miss and still be economic.

CVN cutting edge still seems to be defining and exploring.

Hardman were having to grapple with high cost off shore and thus I would imagine their reserves were more sensitive to reservoir difficulties and the economics of extraction.

Hence I advocate CVN's cheap extraction costs preserves their reserves in the light of the reservoir complications.

But, yes, we would rather see simple flow more often.

Cheers,
Al