xanadu242Thanks for the source. I must say, if you look at the...

xanadu242

Thanks for the source. I must say, if you look at the tables on reserves for each well, it just confirms what is my current view, if not worse. Please open up the tables in the website you have posted and you will see average initial open flow rates of 100-200mcf, with average reserves of 100,000 to 200,000 mcf e.g.

http://www.cogicgp.com/geo_rpt_2006/summary_brushvalley.htm
http://www.cogicgp.com/geo_rpt_2006/table10.htm

This is for an Indiana County well. Your own source proves my point - initial flow rates are more like c.200mcf/day but drop off quickly so that the well, while profitable, is not going to make us rich. If even 200mcf could be maintained for 35 years it would equal 2500mmcf but unfortunately it is 5-10% of that, and it takes many many years to realise the full reserves.

Again, just my opinion, but all the sources, including your own, seem to be telling me the same thing.

Just my opinion.

On a seperate note, Meerkat, I agree with your conclusion, but take a pill. Everyone can have their own view. It would be great if posts were generally based on considered view rather than XYZ is great, you must buy or ABC is a dog run by crooks without any reasoning. Try and stay above the rubbish and focus on the good posts. I have made money after researching recommendations on this site, and I have also hopefully given some good steers to others over the years.

In my view AUZ and SMO offer a good risk return profile. AUZ needs to find more nickel but has a good chance with current reserves providing limited downside. SMO is cheap if the current plan to improve the mill's performance and prove up reserves is successful. With focused management no reason to think not.

Cheers
Monty