Conference CallJust ended. Fantastic summary. Very, very well done and informative.
Good news on all fronts.
Gas sales price is currently $2.80/mcf... that's double what I thought it was!!!!!
Phase 1 production of 45 million cubic feet per day contemplated from this well and one new well starting spring 2007.
Phase 2 production of 150 million cubic feet per day flat for 5 years (followed by 20% annual decline) from 5 wells after 3 more wells are drilled in 2007.
They're going to try to contract a rig from Venezuela for full-time drilling on La Creciente.
Success at La Creciente has lowered the risk of other prospects on the block considerably.
The "secondary" Porquero formation produces in the region. Rates from the Proquero might add another 10+ mmcf/day to the productive potential of the well.
They can't comment on reserves yet and need to do more work to finalize a development plan.
THEY DON'T THINK THERE WAS A GAS WATER CONTACT IN THE WELL. They couldn't log the well because the pressure was 3000-4000 psi higher than anything else in the area (e.g. Guepaje).
Halliburton's estimate of the AOF capability of the well (71.8 mmcf/d) was more conservative than the PSE internal numbers (not discolosed).
$4.2 million capex needed for first phase of development.
They hope to use cash flow from Phase 1 development to pay for Phase 2. Beautiful.
Cost per well ~$8 million.
This is HUGE HUGE HUGE. This well was drilled on the flank of the structure!
Hold on tight. PSE is going to have a nice gap up tomorrow methinks.