austin now cash flow positive, page-16

ADE up 7 percent currently...

From: North Carizzo Market Update 2 and Update 3

"Daily production estimates for this well have been
calculated by the third party reservoir engineer to
range between 250 to 950 BOPD"

IMO when given a range 250-950 I'm expecting something in the middle...500-600 bopd. This coupled with the fact we hit a number of 'pay zones' early, I think set people off number crunching and counting their return prematurely (me included :)

The Third Party Res Engineers let us down period... makes one wonder why they were contracted in the first place. What kind of a range is 250 - 950 bopd anyway?? $20,000-$76,000 per day... are they serious? Granted, in the same announcement they mention 250 bopd MIN from wells in the area... perhaps if we based our returns on this figure we wouldn't be red now... but hey, hindsight is easy :)

IMO for reasons above most people were expecting ~500bopd and we simply didn't get it, hence the sell.

Nevertheless, 300bopd* is a great result. Paid off in 6 months... cashed up. IMO ADE should be worried if they don't come up with a plan and the cash for PEL soon...

GK