Hi Felicia P,
I have some updates on the reserves and estimated costs of recovery.
These figures I am going to relate are for "Primary Recovery" only and that is about 20% of the fields potential. Secondary and tertiary methods are NOT included here.
1. Lower/Upper Cretaceous Reserves (5000-12,800'):
Costs : 10 wells @ $250k/ea + 10 wells @ $750k/ea = $10,000,000
Reserves : 7,000,000 bbl/oil @ $15/bbl = $105,000,000
2. Cotton Valley Reserves (12,800-15,000'):
Costs : 6 wells @ $1.5mm/ea = $9,000,000
Reserves : 60BCF @ $2.50 = $150,000,000
3. Buckner/Haynesville Reserves (15,000-15,900'):
Costs : 6 wells @ $1.75mm/ea = $10,500,000
Reserves : 24BCF @ $2.50 = $60,000,000
"In all probability, the Cotton Valley and the Buckner developments will take place from the same well and with the same production facilities."
4. Smackover Reserves (15,900-16,900'):
Costs : 10 wells @ $3.5mm/ea = $35,000,000
Reserves : 250BCF methane @ $2.50; 670BCF CO2 @ $.50; 4,000,000 lt sulfur @$40
= $1,112,000,000
5. Norphlet Reserves (17,000-17,300')
Costs : 14 wells @ $3mm/ea = $42,000,000
Reserves : 56mm/bbl oil @ $15 = $840,000,000
Reserves : 56BCF @ $2.50 = $140,000,000
Total Reserves : $980,000,000
"In total, approximately $100,000,000 will be needed to drill all of the field. Much of this can be obtained through cash flow. Pipelines and infrastructure could cost between $5,000,000 and $30,000,000 depending on whether a gas plant is built, making a maximum expenditure of $135,000,000 for potential gross revenues of approximately $2,500,000,000."
These are the figures folks. And these are the figures for "Primary Recovery" only (20%) of the total reserves.
The JR 18-4 is still flowing 200bbl/day at 1600psi with 6/64th choke. They have no intention of pumping at the moment. They will just let it flow!
I know that the "investors" sleep well at night. I hope this is helpful to those of you who are nervous.
Best Regards,
Bruce |
