Agentm, I think you are on to something. The numbers just do not...

Agentm, I think you are on to something. The numbers just do not stack up to justify wells based on the Kunde 1 production.

To get the go ahead from a major oil company an investment has to be good for minimum 20% ROI (return on investment), and I think the majors are still using around USD45/bbl for their ROI calculations.

Not sure if Kunde 1 has been fracced, though this seems the norm for this type of play. So based on a horizontal well which may be fracced as well lets think five times Kunde 1 rates as a minimum.

This gives about 400bbl/day @ USD45 = approx $6.5 mil USD per annum. This then falls within the 20% ROI requirements. Allow for the fact that actual prices for condensate can run at a 5% premium to oil prices gives about USD77/bbl real return at the moment and we get approx 11 mil USD gross production per well per year. Times the Couch 100 wells and my calculator just ran out of digits.

This starts to look better and better and does not need huge flow rates as it is land based with plenty of infrastructure available for fluid and gas transport.

Glad I just bought in for another 20k of shares. Now if I can just get the wife to agree on the 2nd mortgage????

Jami