Dempsey is a mediocre field. So Dempsey is not saying much... I...

Dempsey is a mediocre field.
So Dempsey is not saying much...

I had a think about the released numbers.

141 bcf is the mean unrisked prospective resource. It's the amount of gas in place if every single zone still contained gas. Almost certainly they're not going to get that.

If you run the CoS over the figures, you'll arrive at 26 bcf. Now it's going to be higher than this because the CoS for some of the reservoirs will be linked to others (due to geology). But that should be within the ballpark of what's expected.

Now, just because you find gas in a reservoir doesn't mean you'll be able to produce and sell it all. A gas well will only extract gas some distance around the well. And the shape of the structure will also limit what is extracted.

So even if they find gas; in order to get at it they'll need to drill more wells ($$). Some pockets may end up uneconomic to produce (well cost more than the value of the gas) and will never be extracted (reduces the eventual 2C/2P).

All in all, Borba might be a profitable venture. But it's hardly a company maker.