milestones - part 2, page-3

Hi Bystander,

Thanks, but as to the $3/GJ I think you misunderstand.

The $8/GJ is the fully loaded cost to destination essentially.

Does no good to consider just the cost for getting raw gas out of the ground. Then what?

We will be very lucky to see a cost below $10M Capex for a vertical in our area. If we have 5Bcf per well and 20% CO2 we have sales gas of 4Bcf and cost of $2.50/Mcf right there and thats not doing the NAV - CapEx is upfront and revenue is over time. Hz will be at least 50% more in CapEx with the expectation of greater EUR and first year production to make it more economic - but not always!.

The decline is going to 40%+ in first year in all likelihood for overpressured shale.

Given what we know today $8/Mcf all in to get it to the a LNG plant in Gladstone wont be too far off the mark IMO.

We (as in ICN needing +/- 130Bcf of raw gas processing per annum to fulfil GSA if its all coming out of ATP855) will need a Moomba sized gas plant on its own! (but without all the liquids).

Got to look at the entire picture.