early birds club , page-8

rather interesting and disappointing hi guys

rather interesting and disappointing..????

tucked away in GLX's quarterly is the following:

In July and August, 2005, two wells were drilled in the adjoining Block 139,confirming 3D seismic hydrocarbon indicators. Well OCS-G-21106 B2 ST discovered hydrocarbons at approximately 9,500’ TVD and nearly 100’ deeper they found additional resources followed by mechanical problems causing them to discontinue drilling. Daily production of oil or gas has been released from the Office of Minerals Management for the month of May 2006. Average daily

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GulfX Ltd ABN: 41 062 284 084
production rates for the B2 ST were 589 MCFG plus 565 barrels of oil per day.
The B1 well produced an average 567 MCFG plus 559 barrels of oil per day during the same period.

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so some quick cal's

Flow rate of 565bopd as per adjacent well isn't bad if you have 100% interest.

But GLX have a W.I of 12.5%, which bring me to another question..

What is the Net Revenue Interest..????

Perhaps 9.5 or 10%..????

565bopd X US$60bbl = US$33,900

GLX's NRI lets say 10% =US$3,390 X 365days =US$1.2mm or AUD$1.5mm per annum (not including days down for maintenance etc etc)

One might say you'd need multiple wells in each block....could that be a possibilty..????

it's one thing having possible 12mmbls, it's another thing having a low flow rates..

i thought it would be at the very least a few thousand bopd..

REMEBER THE ABOVE IS JUST ONE BLOCK, GLX HAVE TWO BLOCKS..

comments welcomed

regards