Olympic Resources ORL:VSE Message Board

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Gold/Mining/Energy : Olympic Resources ORL:VSE

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To: Alan Whirlwind who wrote (73)	6/5/2001 9:16:39 PM
From: burner	Read Replies (1) of 95

It's always a bit tricky to give numbers. So many assumptions are required. If this well were to do what the Pale Rider did (5 mmcfd) then you could figure ORL would get about 20% of that (If they have 25% WI then 20% NRI would be a conservative estimate. So with a moderate size well ORL would realize revenue on 1 mmcfd (million cu ft). Last I checked the California border price was around $10 US/mcf (1,000 cu ft) That would be ~10,000 US/Day or $300,000/ month. So about 3.6 Mil/yr These numbers are very rounded and based on assumptions. The California Border price fluctuates wildly and the way the gas is sold they might have to fix a price monthly (which is negotiated I believe). The well might put out considerably less than 5 mmcfd (or more). And don't forget the well has maintenance costs and drilling costs need to be considered.

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