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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Mark Adams who wrote (12222)	8/16/2002 8:43:53 AM
From: russwinter	Read Replies (1) \| Respond to of 206209

Simmons ran the economics on generic prototype wells in an Aug.8,2001 report. Here is link. If you don't pull it up, just sign up (for free) at his home page. simmonscointl.com For GOM: GOM (jack up <150' WD) first year decline 42% DCF rate of return: $2.50 mcf -30% $3.00 -9% $3.50 12% GOM (jack up >150'WD) first year decline 40% $2.50 mcf -32% $3.00 -11% $3.50 9% GOM platform first year decline 45% $2.50 -8% 3.00 19% 3.50 45% The high decline rates and marginal returns under $3.50 illustrate why activity is still slack. The equilibrium price for NG looks to be at least $3.75, maybe higher.