tte, what are you thinking?

I am pretty incredulous about this latest project of Titan Energy.
Are they taking the mickey ?
From my research, this is a high risk, expensive proposition for such a small company to take on.
The company plans to spend $800,000 usd which may be closer to a 1,000,000 aud by next year for a well that will cost in excess of $6 million to get a flow of, if its anything like the Conley Field figures they used as comparison, of approximately 110 bopd per well. This is going on Conley's field figures quoted by TTE of 30,000 bopm for 11 horizontal wells.
Titan are entitled to 10% ,so their cut if, successful, will be 10 bopd!!!
How will this ever provide cash flow to front up for 23 such wells!?
They might have a 89% chance of finding oil.
but imo, they have a very low chance of getting enough oil to be economic.
The project is also at extreme risk to any drop in the price of oil.
That has to be on the cards with all the oil the USA is producing in ever increasing numbers
A company I know well Molopo Energy, has drilled horizontal wells in the Permian basin for a cost of $5 million and they had initial flows of over 400 boepd and they are still uneconomic.
These wells will likely never produce enough oil to return the capital invested.
Here are some interesting websites to research
http://gswindell.com/hardeman.htm
http://www.texas-drilling.com/operators/echo-production-inc/240125
http://www.edmontonjournal.com/business/Lamphier+production+Iran+biggest+threat+Canada/9220966/story.html
http://blogs.wsj.com/economics/2013/11/16/number-of-the-week-u-s-producing-more-oil-than-it-imports/