re: to jocam Hi Stoss69The company believed at it had 23 bcf in...

re: to jocam Hi Stoss69

The company believed at it had 23 bcf in recoverable reserves at end December last. This included Vermilion G1 but not the maybe 5bcf in G2. Neither did the estimate include Vermilion East or Main Pass which if you wanted to be ultra conservative could add another 10 bcf net to PSA.

So if you detract this year's estmated production of 5.5 bcf they could end the year with 30 plus bcf in recoverable reserves or perhaps 4 to 5 years at current rates of production.

Scott Ryders estimates of proved 1P reserves (these are ultra conservative) are probably half that but as the company has shown at West Cameron its estimate of recoverable reserves is probably closer to the mark.

Going forward if they are successful at Vermilion East then this field will be brought on stream by the end of the year and produce through the Vermilion platform.

Main Pass if successful shoul be producing say at the latest by the middle of 2005. They could end up producing 10 bcf or more in 2005 which of course would impact reserves and production life. They would need to use the funds generated to obtain more leases.

The targets at both V East and Main Pass are typical shallow GOM layered sands so you would think they have a reasonable prospect of success but as we have seen before with Petsec even one dud well will slam the share price.