Hi Spozzie its all good.
If the wells you are referring to are the Sleepign Giant ones , then that $250 CAPEX cost per well would indicate a fast payback given the wells have around 640,000 mcf per well. Guessing $4.00 per mcf so $2.6M per well
Dont know the expected life per well but guessing at that at least the initial CAPEX would be returned as profit after one year so an IRR of 100%
Therefore would they be better off developing those wells rather than"flicking them" ?
Personally think they would be better concentrating on developing Sleeping Giant and putting Illinois on the back burner to conserve cash.
If they concentrate on Sleeping giant the infrastructure (latteral gas lines ) become significantly less costly per well as costs spread out over many wells.
SXA Price at posting:
31.0¢ Sentiment: None Disclosure: Not Held
