International Rochester Energy Corp. (V. ROH) Message Board

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Gold/Mining/Energy : International Rochester Energy Corp. (V. ROH)

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To: R F B, Jr. who wrote (116)	3/20/1997 6:54:00 PM
From: Ed Ajootian	of 188

RFB, I doubt that anyone would have farmed into this well with terms such as what you are so concerned about. We'll see what Peter says. My understanding is that they are going to immediately start trucking the oil out, so there is no delay to connect to the pipeline. The connection to the pipeline will probably have to wait until the rain stops and it will take 3 miles of new pipe. They already are at the max that they would be able to truck out so they are in no rush to test the upper two zones. Once the pipeline is near done they can test the upper zones. The word is that Ecopetrol won't back in for at least a year. They are broke and they want to encourage more companies to drill down there so it is a good bet that ROR will have a full 25% working interest in the well for the next year. If you assume a production rate of 4000 bod and ave. oil prices of $21 and production costs of $3/bbl. you get an annual cash flow of just under C$.40. Not too shabby, paying C$.80 for a stock that's going to generate C$.40 in cash this year.

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