Ann: Southern Cooper Basin Operations Update, page-25

100,000 cubic feet per day for a CSG well is a very good result 618!! These are not conventional wells. In this project there will be many low producing wells like any typical csg project and if they avg 100mcfd l would err on the side of commercial success rather than not. BUT, in the end it does not come down to flow itself, that is why STX is not obsessing about rates. It really comes down to getting enough flow to cover the cost of wells, that is the cost of flow across all project wells, whatever that rate may be...maybe 100mcfpd, maybe 10mcfd, maybe 500mcfpd who knows as long as it covers cost and leaves enough margin for profit.

Sustained flow nore than a certain rate is what STX need to keep the exploration dollars flowing from Orica etc IMHO!

Pure spec!

HC