jake002,You need to keep in mind that not all wells will be...

jake002,

You need to keep in mind that not all wells will be online and at peak rate at the same time, and not all wells will reach target.

So even if target is 300-500 Mscfd, average production per well will likely be somewhere south of 300.

Another thing that's not really clear when he says well costs of $1-1.5M are whether these are drilling costs or full drilling, completion and gathering costs. It sounds a bit cheap for full DC&G so I suspect it's just D&C.

Then if they go beyond the 30 TJ/d to the 60 they have pipeline capacity for, there are a whole raft of new costs for compression etc. That's why I think they are probably better off just going for 30 TJ/d at this stage rather than trying for the brownfields expansion. They'll get a much higher return on that first 30 than on the second 30.