a little bit of info....., page-4

and following up with some maths.

Say both wells do 10mcf a day.

At average of US$6 net a day = US$60,000 a day.

If total wells cost US$6M, then that is 100 days to recover the costs. After that it is pure profit. And some of those 100 days will be in 2004, so most of the 'real' profit will fall in 2005.

Re the acctg exercise comments, that is worth giving some thought to. But I do not think the development wells will accelerate the write offs as quickly as you may think. Remember the gap in the annual report between directors estimate of reserves and the independent geologists, it was almost double the difference or not far away.

Therefore if mgmt takes the view that the reserves figure is too low and they are going to be forced to write off an accelerated amount already, then putting more wells into production earlier will only have half the acctg effect you are concerned over because they are producing from reserves that aren't being fully recognised in the books.

In a nutshell, even more revenue vs only half as much write off. Personally I think the accelerated amortisation and depletion etc is being overdone at present, but I would rather have it that way now than have a nasty shock in the accounts in 18 mths time etc.

Think about it. I think 2005 figures could be a boomer.