GGP 0.00% 0.6¢ golden gate petroleum ltd

There is a couple of observations that I would like to add,...

  1. 13,406 Posts.
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    There is a couple of observations that I would like to add, first is that although the Cline has a lower EUR it has a higher 30 day IP.

    The other thing is something I mentioned earlier and that is the cost efficiencies of longer Laterals. For approx a 50% increase in well costs you get close to a 90% increase in EUR from 4000ft -7500ft

    At a $30 Net back its a difference of nearly $11 Mil over the life of a cline well, at $40 it makes $14.5 Mil, the extra cost of the well is $3.4 Mil.

    There will be costs on the extra capital expenditure but as a large ammount of the costs will be recovered within two years it won't be great.

    Cheers Whisky
 
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