marginal or profitable, page-27

Blokes, suppose they get 8mmcfd. The average wellhead price for gas in Utah in 2009 was $3.15. Even on that price, GDN's gross revenue would be US$9.2m p.a. - but wholesale gas prices in the US are currently running at about 20%, or $1.30, less than last year, so the well head price would presumably be less than $3.15.

So by the time they pay taxes, running expenses and any royalties (do Eclipse still have the right to buy back in?) they will have enough left to drill one well a year.