ahh, the classic hc stock gdn, page-59

Theres been a lot of optimistic calls by both the company and posters.
Was there 3 TCF potential.... Yes
However Leadville was to supply most of the Gas
Leadville most likely but not definitely is a dud based on Paradox 1.

Therefore Real potential for Paradox is now hundreds of BCF.

Then there is the development cost.

We could be talking about 50 Wells and flow rates that mean payback could be 24 months....

Is it worth drilling ABSOLUTELY.
But it is a big call for a small company, and could wipe them out if this fails.

Development costs will be high, and margins will be low.
Thats why this area of the US has not already been drilled like swiss cheese.

Don't be surprised if GDN discover a field with 300 BCF but need 50 Wells and US$375M to develop it.
Then because of the poor flow rates, it will take a Gas price of $5 before it is worth developing.
These are the real risks, and this is why nobody bothered drilling this prospect in the past.

Maybe it will turn out better than the above scenario, and thats why they need Paradox 2. To prove whether there is anything worth developing, and help the ascertain the costs of doing so.

After Paradox 2 they may need 3 and 4 and burn more cash, before a decision can be made as to whether developing a whole field is worth it or not.