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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Aggie who wrote (49296)	8/12/1999 11:04:00 PM
From: upanddown	Respond to of 95453

Hi Aggie Greetings in your tropical paradise though it must be a tad humid in Trinidad right now.<g> An aggie should be used to a little humidity.<g> Thanks for your response. Did you see my post on the MRO find in the Gulf? Its a couple back. Your thoughts on it appreciated since I got MRO and FLC and DO and RIG so I hope I got it covered. <vbg> TIA, John

To: Aggie who wrote (49296)	8/13/1999 9:51:00 AM
From: Ken Robbins	Read Replies (1) \| Respond to of 95453

The profitability of these wells depends largely on the production rate. Take for instance the unit in the Oakvale Dome (Mississippi) in which I have recently bought some royalty. The first well had been producing 10 MMCFD when the second well was drilled. The new well tested 21 MMCFD and although I don't yet have the combined production rate, we expect 25 MMCFD. Assuming 10 MMCFD and $2.00 per MCF after royalty and production expenses, a $4 million well would pay out in a little over 6 months. I am not saying that these are average wells for the area. Their production rate is indeed considered outstanding. I wish I had a better handle on the likely life of these wells. However the first has been making its 10 MMCFD with no decline for over 18 months.