In 1998, Burlington were producing 110 MMCFGPD from the shallow zones, the Deep Madison was restricted to 50MMCFGPD at that stage but about to ramp up as the gas plant was being expanded. Total field production was just over 0.5 TCF, the majority from the shallow zones.
Should be more recent data on production but haven't found it yet.
So it appears that there could be a couple of hundred + BCF of gas reserves in the shallow Madden formations which are a combination of 1P developed producing, 1P non producing and 2p which should be added to gross reserves. Looks like some oil has also been produced also.
Must admit to being a little perplexed as to why these formations which currently produce at 30 MMCFGPD were not / are not included in the numbers for the sale. Are they not profitable at current prices or were Freeport really that lazy with this asset?
Cheers
Dan
ELK Price at posting:
6.2¢ Sentiment: Buy Disclosure: Held