Icharus, can you expand on your calculations, how there is a...

Icharus, can you expand on your calculations, how there is a payback in 10 months?

Most assumptions I have seen price an EFS well at around $6-7M.

According to Patersons the net income in the first 30 days was around $1.4M.

So, were the TXN declines continue in the order of similar Swift wells for the next for 3-4 months, then stabilise....

Month 1: $1.4M (NRI as per Paterson's note)
Month 2: 700K (50% decline)
Month 3: 350K (50% decline)
Month 4: 300K (stabilising)
Month 5-10: 280K (average, stabilised)

around $4.43M in 10 months.

Well cost of $6-7M, if they trundle along at $250K per month, payback could be another 8-12 months away, so a payback in 1.5-2 years? Please tell me how you got 10 months?

Another 8 wells, could mean 8 x $6M = $54M and raises the interesting question, do TXN have the capital and income to cover the next 8 wells without a capital raising if these so called "acceptable" declines of 50% were to actually occur?

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DYOR for info only and not investment advice