I'm more intrigued by the flow rate that they will get. They've got 80 metres at 6% porosity cutoff, and the previous announcement was 30 at 9% from memory. Implies that they think that the 6-9% porosity section will be viable with stimulation, which in turn implies that the 30m at 9%+ should be very good.
Rough calc says that 2mmscf/d is around 0.8PJ/year and I'd imagine that they'll get $4-6 per GJ net. That equates to circa $3-5m gross per year or 750k to 1.25m on a working interest basis to MEL. Scale that up or down depending on the flow rate. The big question is - what will the flow rate be? I'm struggling to find anything to compare to regionally, other than an 80's Jurassic oil well that had initial rates over 2k bopd. @OldGeo - any thoughts on the flow rate side of things?
MEL Price at posting:
4.0¢ Sentiment: Buy Disclosure: Held
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