while the Hoffer well flow is fantastic, it is a slight exageration to attribute a 100% increase in gas production to the well. I think you are using the gross (working interest) share of production in your calculation rather than the attributable production after royalties.
Initial flow is reported at a choked rate of 3.8mmcfgd and 35 bopd. Based on the ample pressure I reckon a flow rate of 4.5mmcfgd might be possible. AMU's 50% working interest would deliver production of 2.25mmcfgd, but subtracting royalty interests would bring that down to around 1.8mmcfgd attributable to AMU. Assuming production for about 360 days a year (to allow for some down time for maintenance etc) that would mean the Hoffer well would deliver to AMU some 648mmcfg on an annual basis.
Not quite double last years total production of just 1,094mmcfg, but a fantastic result just the same and certainly one which we AMU shareholders should be excited about.
Now if the price of oil would just cooperate and start to move north again ..... : )
AMU Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
