cucucu bayou, page-3

There u go announcement out today right on cue haha!!

Here are some quick back of envelope calculations for possible Turner Bayou revenues from the shallow wells.

Each well expected to flow at 300 to 500 Mcf per day

300 x 365 days = 109,500 mcf per annum

x $7 per Mcf= $766,500 per well

x 5 wells = $3.83 million per annum

x 40 % PYM's revenue interest = $1.533 million

So success at the low end of expectations should add new revenues of at least $380,000 per quarter... upper end would be $730,000 per quarter using 500 mcf per day flow and $8 per Mcf.

Multiply this by 30 wells and Turner Bayou can be contributing anywhere from $9 mill to $15 million per annum as of end of next year... for many years to come !

Combined with existing revenues from La Salle Parish Oil, Saline Point, Raven (1 and 2) its highly likely assuming all goes well total 1st quarter revenues next year will be in excess of $1.2 million vs $387,000 for 3rd quarter 2007...


So an increase in sp by 4 times would also be nice by early 2008... very easy to justify on conservative success and ramp up in earnings!!

And multiply that success out over 4 quarters of additional drilling next year, together with Atocha project and its easy to see 4th quarter 2008 revenues in excess of $5 million per quarter by year end ~ sp $1.85

just keep buying whilst its undervalued cheers c u