the facts and figures tell the story, page-28

Paprika,

You are right that they could in fact grow production at 20% for perhaps a few months. But to illustrate my point (assuming consistent decline rates and consistent production rates in new wells), there will come a time where they need more and more rigs to achieve the growth. Let's call that point 1500 bopd (assuming no high impact success).

June - 18 Rigs in operation for 1,500bopd
July - 21.6 " " 1,800bopd
August - 26 " " 2,160bopd
September - 31.2 " " 2,592bopd

Obviously it's not sustainable to build a rig fleet that quickly. The question is, at what point is the equilibrium of production, decline rates with the 20 or so rigs that we will have in operation in the next couple of months. The production figure may be 2,000bopd. Throw in a high impact success and it could be 2,500bopd??.

Personally, my expectations are consistent growth of 100bopd every month which would get us to 2,000bopd by end 2013. Anything better than that and the company has done an amazing job!!!.