annoguncement pending, page-10

Just a note on the gas production which we know is as cheap as chips in the US right now.

If my maths is correct, the Barnhart well is producing at about 154 boe/d and even at $2.80 a gj it will still earn $2500/d Over a year the gas will pay back $900k of the capex. Better than nothing and worth remembering we still get to quote reserves and flow rates on a boe basis. eg the barnhart well is flowing at 679 boe/d atm and clearly this sounds better than 525 bbl/d

Longer term US gas prices have to bounce eventually as they are shutting coal power stations at a rate of knots and starting up gas turbines.