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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: Condor who wrote (31750)	4/27/2004 8:45:07 PM
From: energyplay	Read Replies (4) of 206223

0.9 Bcf for a well is not that big. Average well (not coal bed) in middle US onshore is maybe 1.2-2.0 Bcf 310 mcf/day maximum flow - Lets assume 250 mcf/day initial production. This will mean about 90 MMCF / year, or about 10% first year. $5.50 per Mcf, and price about 80% because there are lots of pipleine in Kansas. So $4.40 / Mcf. Doesn't seem there is a BTU bonus. $1,100 per day gross. Admiral Bay has about 80%, so $880 / day $26,000 / month $300,000 year You can take the 300k and divide by the number of shares to get the effect of this well on value of each share. I would be very happy owning this well. For a public company, you want to own a bunch of wells. How many more and how soon will there be new wells ? *********** For an exercise, look at TMR - about 90-110 MMCF/day. Latest well producing at 9.1 MMCF/day, they own about 85% , so about 8 % production increase from this well. TMR wants to drill 15-20 more like that this year.

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