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Infinity Energy Resources Inc. Message Board

  • ch4_tycoon ch4_tycoon Aug 10, 2006 8:57 AM Flag

    Operations Update Info..

    From the update...

    """Therefore, the Company believes its full-cycle economic costs (F&D costs plus OPEX costs) will range between $2.10 per Mcfe and $4.10 per Mcfe for a typical horizontal Barnett Shale well, with a midpoint of $3.10 per Mcfe, which is representative of the Company's expected full-cycle economic costs prior to running sensitivities. The pretax internal rate of return over the life of a typical horizontal Barnett Shale well, using a monthly discounting convention, ranges between approximately 18% and 147%, with a mid-point of 62% which is representative of the Company's expected rate of return prior to running sensitivities, dependent upon the well's assumed gross reserves (which we have varied between 1.0 Bcfe and 2.0 Bcfe), assumed capital costs (which we have varied between $1.7 million and $1.9 million) and assumed price deck consisting of the NYMEX strip price by month for four years (as of the close of August 2, 2006) and a flat $7 per MMBTU price thereafter, adjusted for basis differentials, transportation costs and quality."""

    ...that sounds like reasonable economics, and should appease those that have doubted the economics of Erath County and also help the stock price situation going forward.

 
IFNY
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