Assuming both wells combined produce at say 50 mmcf a day, thats a gross 2.5 mmcf a day to Entek for its 5% interest. Production flow tests and sustained production rates are inevitably different even though Entek is saying there is a chance the combined flow rate will exceed the 80 mmcf a day capapcity of the proposed production facility.
Gas sells currently at US$7,380 an MMCF or US$7.38 an mcf. So around US$17,600 gross a day for Entek. That's a very nice return.
Someone correct me if I am wrong.
ETE Price at posting:
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