re: Ann: Garner 1 well intersects significant... AutosimeHard to...

re: Ann: Garner 1 well intersects significant... Autosime

Hard to say what this well is worth before we see results of production testing
Company has provided a comparison between Garner #1 and nearby Henkes #1 well. Henkes has produced 6.1 bcf and 142,000 bo over 30 0dd years and with little evidence of decline is today still producing 450mcfd + 15 bopd

If we assume similair production profile from Garner #1 well then we are looking at revenue of approx US$1m p.a, based on a poo of US$70bbl and Henry Hub 09 avge price US$3.92.
In addition the successful drilling at Garner #1 paves the way for further development wells on the structure

Interestingly the EIA outlook forecasts the Henry Hub natural gas price to rise from a 09 avge of US$3.92 to a 2010 avge of US$5.48