If anyone is wondering where is the all the oil, as it doesn't...

If anyone is wondering where is the all the oil, as it doesn't appear to be 3000+ barrels of OIL per day, this is because the US and Australian regulators allow companies to quote BOE, (Barrel of oil Equivalent). This allows gas reserves and production to be included in one number. Therefore on heating value of 6000 cubic feet of gas equals 1 barrel of oil.

"
Definition of 'Barrels Of Oil Equivalent Per Day - BOE/D'
A term that is used often in conjunction with the production or distribution of oil. One barrel of oil is generally deemed to have the same amount of energy content as 6,000 cubic feet of natural gas."

Read more: http://www.investopedia.com/terms/b/BOED.asp#ixzz1kEop01r3

This worked fine in the USA when oil and gas were interchangeable in the electricity generation industry. If this was the case today, gas would be priced at $15 to $16 mcf (thousand cubic feet), but it is not, the Henry Hub price (US Nat gas price point) it is currently in the $2 range, so for any financial calculation, the gas production needs to be discounted.

Having said all that and looking back over ASX statements,



http://www.lincenergy.com/data/asxpdf/ASX-LNC-358.pdf
"Production from these assets for the third quarter of 2011 is an average of approximately 3,100 barrels of oil equivalent (BOE) per day gross, comprising approximately 94% oil."

So we should be seeing approx 2900 bpd of Crude and Condensate (C&C)from the Texas fields, I am seeing at best 2600 bopd. The current oil cut is 75% not the 94% as stated in the ASX release.

It will be interesting to read the break down in the quarterly out soon.