wcl t/o metrics, page-26

Dozen,

Can you explain further why you think it would cost $500 million to get to 65tj/d

The way I have been seeing it is the JV partners should be able to get to 65tj for about $120 million and as such WCL would need to find only another $30 million for our share (that is net of the cash we hold now.)

I base this on Meridian needing another 50tj with the average lateral well producing 800 000 scf/d - another 62 wells required at $2 million per well. I think $2 million enough allowance using our own rig for most of it.

To get to $500 million you'd have to think each well costs $8 or $10 million and I'm pretty sure they don't cost anything like that.