3 to 4 days away from a result, page-37

Hi T4P,

Thanks for your calcs.... I just did it another way. Appreciate your thoughts.

SS-10 (Songo Songo) has a pay of 101m and production flow looks to be 55 mmscf/d when on production.

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http://www.orcaexploration.com/news_07_5_nov.asp

The well was flowed at a peak rate of 52 mmscf/d, and a sustained rate of 40 mmscfd through a restricted 1" choke at a 1,900 psi wellhead pressure during a 24 hour test that was restricted by surface facilities. It is estimated that the well will be able to flow at an initial rate in excess of 55 mmscf/d when on production. This makes SS-10 one of the most productive wells in the field and increases the total deliverability of the six production wells to over 200 mmscf/d.

The well was drilled to a total measured depth of 2,426 meters within the main Neocomian reservoir. The top reservoir was encountered on prognosis at a measured depth of 1,909 meters (-1,700m TVDSS) and a comprehensive suite of wireline logs, the first on the field for over twenty five years, was successfully acquired. From evaluation of the logs, 101 meters was perforated in the reservoir.

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Given a similar ratio, would it be fair to say this hole could flow about 33mmscf/d?

A few cals (I'm no Gas expert), 33mmscf = $9 (Gas price) x 33,000 (33 x 1000mcf) = $297,000 day. 20% net to KEY = $59,400 day = Revenue of $21.6M p/a.

This is only one well....

Is this right?????? Comments please????

With a market cap around $10M.... (and at around cash levels), this seems to be the bargin of the year...