VEN 9.09% 1.0¢ vintage energy ltd

Greatbchart, page-8

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    $2 was my conservative guestimate of what the company may end up with after paying all the costs. There are so many variables.

    1) gas processing toll $2.5? (depends on operating costs)
    2) gas distribution toll $1? (depends on the distance)
    3) capital expenditure per GJ of gas produced $2? (depends on well costs and pipelines)
    3) employee expenditure $1? (depends on the number of employees)
    4) corporate overhead $0.5?

    Each well/stimulation costs $7.5 million dollars. If they can produce 5PJ per well during the life of the well, it works out to be around $1.5 dollars per GJ produced. They also need pipes. so, it may work out to be around $2 per gigajoule of gas.



 
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