ATPG Shareholders Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : ATPG Shareholders

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: BuckeyeOil who wrote (3032)	4/25/2013 8:16:12 PM
From: Kramer38	4 Recommendations Read Replies (2) of 3620

Look, I don't own any ATP stock, I don't own any ATP bonds, but your numbers regarding Clipper are simply wrong. The well currently producing, tested at 9000 bopd and 4.6 mmcfpd. The second well tested at 4650 bopd and 45.6mmcfpd. This gives you a grand total for both wells of 13,650 bopd and 50.2 mmcfpd. Here is the ATP press release which verifies these test results. businesswire.com Even using your estimated prices of $90 oil and $4.50 gas, and using a very generous net revenue interest of 74.5% (which ignores all the term ORRI/NRI that burden the property) ATPs cash flow from both wells at the tested rates (the first well is not producing at tested rates btw) is $29.2MM/month. Add this to your estimated cash flow from the other fields and you get $52-55MM/month, not the $100MM/month you suggest. Regardless of the initial rate, you can expect @ a 10%/ yr production decline curve to commence within about 6 months of first production. That is simply the nature of a reservoir this size. It will be depleted in about 5 yrs. unless another well is drilled.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next