shakeout & what we have to look forward to, page-46

Hi CM

1000 boepd per well x 2 wells = 2000boepd x 30 days = 60,000boe

GGP's share is 6000boe
At $200,000 net thats a price of $33.33 per boe.
Simplistic but Permian rates for BOE range from $45-$50 so i think i have underestimated the EF BOE to be on the save side.
Of course it all depends on the oil ratio but at 50% you hardly need much income from NGL or gas to get $200 k

On a quarterly basis given my calcs are close then you are looking at aroung 500-$550k for the 1st qtr of production.
Compare that t o the whole company from all production in the march qtr of $456,000 and it looks like the EF project is a good deal.
At least the company is growing cashflow.
How it manages its capital requirements also have an impact but no business can survive if it doesn't eventually generate cashflow