huge find, page-8

re: huge find trade4p hi t4p

what about TAKING OUT..TAX, MAINTENANCE COSTS AND PERHAPS ROYALTIES..????
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Not as good as some may have hoped for...

235mcf will equate to about $1400 per day per well @ $6/mcf

Problem is...380,000 mcf recoverable per well at the rate of 235mcf will take about 1600 days (4.4years) to extract on a straight line reduction...so more like 10 years for each when normal recovery curves are taken into effect.

380,000 mcf = $2.2m at $6.00/mcf

Lets be generous and assume $8.00/mcf and we get a return per well of about $3m over 10 years...at today's value.

Not bad considering the cost of each well is just $250K...so a real business here...but hardly the sort of mind blowing returns that might result in a rapid share price appreciation.

Long term potential.

Cheers!



regards