re: flow rates This may help some with the flow rates and...

re: flow rates This may help some with the flow rates and earnings calculation

Ok...

The last statement on flow rates was on 18th of July, and it said the first 4 wells would produce a combined daily flow rate of 500-600mcf, while they are being choked.

Constants are(All in USD):
Current gas price is $6.25/mmbtu (Note 1mmbtu = 0.97087MCF, so for arguments sake lets just say 1mcf = $6.25)
125mcf per well (choked)
Imperal revenue share = 60%
Cost per well = $250k*60%= $150k

So at the choked rates that equates to the follwing for IMP alone:
1 well: 125 x 6.25 x 60% = $468 per day ($171K per year)
10 wells: $1.71 million
100 wells: $17,1 million
(Note that a well will pay for it self in under a year)

Now lets dabble a little further, we know the production rates will be more than the choked rates, by what percenatge only time will tell.

Say production rates are:
10% more than choked, then:
1 well: 125 x 1.1 x 6.25 x 60% = $515 per day ($188K per year)
10 wells: $1.88 million
100 wells: $18.8 million

50% more than choked, then:
1 well: 125 x 1.5 x 6.25 x 60% = $703 per day ($256K per year)
10 wells: $2.56 million
100 wells: $25.6 million

100%more than choked, then:
1 well: 125 x 2 x 6.25 x 60% = $937 per day ($342K per year)
10 wells: $3.42 million
100 wells: $342 million

Next step is to work out what this equqates in value per share, i've run out of time now, so if some one can work out the number please share, and post them here! Or i'll do later ;)

Notes:
MMBTU = One Million British Thermal Units.
Gas Definitions:.
CF = Cubic Feet.
CCF = 100 Cubic Feet.
MCF = 1000 Cubic Feet ...
check out http://www.usourceonline.com/energycalc.html