what's next, page-20

cmonaussie,
I had a look at that article, it doesn't say how many acres are involved. It certainly has a lot of wells drilled (75) which implies an average of 200mcfd of gas which is about $800 each well a day. My calculations puts this at $21m income per year (gross) , no idea as to the cost structure ie profitability. Must be OK as they paid $104m for the properties. Lack of detail regarding the acres involved means we don't know if it is saturated with wells already, or if there is room for lots of more wells.

Spoke to MD at Challenger this morning. Exactly what happens at TC will depend on the results. His best bet for the rig arriving is the last week in September. He said the deferreral of their drilling slot last time was because it took several weeks to set up all the accounts etc. that was necessary due to becoming an Operator.

If the TC results are good then he didn't think they would want to kill the well to test the Shales. Also if the TC is commercial the likelihood will be that the next well will also target the TC so they can biuld up production to justify building a pipeline to sell the gas.

October could be our month.

Saltbus