pb#! had major gas intervals after 12960', page-56

Hi 6ULDV8,

Its not definitive, but my best guess is as follows:

I look at both the US Wellhead price achieved and the Colorado Well head price achieved.

I don't have Utah figure, but the above two roughly averge out about the same.

What it shows is that the Well head price seems to be about US$2.50 below the Henry Hub price.

As we know that has gone up and down like a yoyo.

As for the link up to the main gas pipeline, it already has been stated that the operator will pay for that.

The idea that PB#3 will be the last well I beleive is misconstrued. The idea here is to prove up the field, then poke holes in it. If you can cover the cost of the well between 1-2 years, then its the reserve that is important.

RPS have already provided a P50 estimate of some 80+bcf wih a high estimate of 240+bcf

So there you have it.

Now there are royalties and income tax etc...which will have a bearing, but my view is that the world is still focused on climate change. Gas is by far the quickest way to cut emissions without any serious investment in new technology / equipment. So Gas I feel will revist US$7 and maybe go higher...and its still cheap even then.