Ann: Targets Gas Production of 15 mmcf per day b, page-26

re: Ann: Targets Gas Production of 15 mmcf pe... current well head rpice around 3.70 per mcf so $3700 per day for 1mmcf x 30 days = a revenue from sales of $110K per month.

Im not disputing that what I'm trying to point out is revenue does not = profit and there is considerable cost per mmcf in production expenses, future development (wells get depleted you constantly have to allocate money for future development) plus all the company overheads.

The biggest advantage JS has brought is a savings in cost for water disposal which increases margins.

STILL I reakon there is at least $2 per mcf in costs for every mcf produced.

Those costs were largely
1. water disposal - hopefully sorted
2. Huge wages for incompetant directors - they are gone but apparently they want to hire more
3. Cost of debt- at around $8-10 mill pa on interest its killing their cashflow.
4. Development - Each well SHOULD aparently cost about $1.5 Mill to drill then some additonal costs to tie in etc + maintainance. So far they have spent 190Mill to drill what 10 wells? until they can prove they can cheaply drill and bring wells into production this figure is a mystery.