A benchmark for the Florence wells could be the adjacent (Jevernick Oils) Roayal Gorge#1 well which flowed 100 bopd from the Pierre Fmt. for 3 years.(currently about 80 bopd)
COI (and STX) were very convinced about the "unique insides" povided by the 3d seimics - so they should have a perfect selection of drilling locations.
A flowrate of about 100 bopd should bring monthly revenues of about A$150,000 for COI (and for STX also)
500 bopd equals A$ 750,000 per month for each partner. 1,000 bopd equals about A$ 1.5 Mio.per month for COI (and for STX) and so on ...
If the inital three wells are successful, COI would imho turn in a selffunding producer/explorer immediatly and 8 to 10 more florence wells could be possible this year enhancing revenues month by month ..
Imho a rerating would be on the table
... but big question: is it possible that they allredy drilled the first wells without informing the market? Probably not.
So perhaps they negotiating a farmout and Florence is a part of the deal?
COI Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
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