Ann: SM58 G2ST Well Results, page-81

Thanks LA ... now to thinking out loud ...




OK 4 months = ~120 days = 120,100 Net BO & 1,999,200 Mcf gas = $3,482,900 + $4,998,00 = $8,480,900 of REVENUE. To get to their $5.9M of Production Income means costs = $2,580,900

Converting to BOE (for convenience momentarily) I get 453,300 BOE and
Cash Production cost = $5.70/Boe ...
based on 4 months at those rates/prices.

If I go back to the AGM ov Nov'19 presentation, slide 18, gas production estimate is given. It looks a very linear step change of and additional 2 Bcf each Qtr (and above is 2Bcf for 4 mths) ... corresponding to each G1/2/3/well. Slide 19 has a fairly steady NET production rate ~23,000Mmcfpd.

So I'm thinking, for modelling, going with 15,000 Mmcfpd (2 wells), and no decline for the short term. That would put annualized gas production at ~5,475,000Mmcf (~5.5Bcf) ... sort of fits the new model

I do have to stress though I am not looking for an exact answer. For example the BTU conversion - doesn't matter to me because I can adjust for that with price in the model (which is what happens anyway ... get a premium for higher heating content). Even production volume is adjusted for in the model ... its given a mean value (say 5,475,000Mmcf)

I'm going to put the complete models up in separate post (seeing as you are enjoying that aspect). Hopefully it wont be too confusing.