Geopacific Resources Ltd GPR

Primary Symbol: GPACF

Metals & Mining Gold

Geopacific Resources Limited is an Australia-based mining and exploration company primarily focused on the development of the high-grade Woodlark Gold Project in Papua New Guinea. The Woodlark Gold Project (the Project) is an advanced gold development project, located on Woodlark Island in Papua New Guinea (PNG). The Project has an endowment of approximately 1.6 million ounces of gold in mineral resources. The Project's prospects include Kulumadau - large-scale target corridor including Great Northern and Boscalo prospects, Talpos/Bains (and South) Prospects, Wayai Creek/Okiduse Prospects and Little McKenzie Prospect. The Project covers approximately 529 square kilometers.

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Geopacific Resources Ltd

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Comment by geomeanon Oct 22, 2007 7:08am

265 Views

Post# 13613247

RE: S1 Filed

Jag

The sharp recent rise in well drilling and particularly well stimulation costs has made some US unconventional gas resource uneconomic. The Bossier play in SE Tex is especially at risk. If you add to that high impurities, then the economics are a disaster

You can already see this is GPR's $0.16 per mcf net backs.

According to Chesapeake Energy Corp., the Deep Bossier tight gas play in East Texas has an average $10 million well cost and a 5 bcf/well (gross) average estimated ultimate recovery (EUR).

that makes the F&D about $2.67 per mcf.

GPR receives the Houston Ship Channel spot prices less the stipulated $1.50 per mcf treating fee at the treating plant field gate, so their net gas receipts averaged $3.19 per mcf during Q107 and Q207. Lifting costs were $0.76 per Mcf.

Then account for deductions for royalties, taxes, net profit interests and G&A.

All this stuff about TCF potential doesn't mean much if the economics don't work.

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