the numbers behind those assumptions are incorrect. Assume for...

the numbers behind those assumptions are incorrect. Assume for sake of argument the wells begin flow at 5 mmcf/d. 1) they would never ever be flat for, even for 1 month let alone 3 years due to field decline.

anyways if we assume the well is a "magical well" and flowed flat at 5mmscf and the company gets 5 dollars per mcf then revenue generated would be 9.125m per annum, NOTE this is pure revenue only and you would have to take off royalty and operating costs, something the company has never given. So if the well is Magical and produces flat at 5mmcf/d it would take 1.5 years alone to to pay the capex cost of the well, this is on a pure revenue basis not NPV, ie taking into account opp costs and royalties and salaries for the tsv management

Any reservoir has decline rates, just cause TSVdon't talk about them, doesn't mean they don't exist!

Peace