Question for PetroJoan re 30,000 Barrels Daily 201OK PetroJoan - we know you like CNE. Now, can you explain how you come up with 30,000 boe/d for CNE in 2012?
The company has certainly not provided guidance to this number. They have said they will exit 2011 at 14,000 boe and have indicated another 2,300 boe/d to come in January from the gas liquids contract (which I think is a really excellent deal for CNE). It seems a stretch to go from around 16,000 boe/d with the gas liquids at the start of 2012 to 30,000, after allowing for production declines. Also, we now know there will be zero production from Capella.
The high test rates on the Rancho Hermoso wells never seem to result in stabilized production at anything close to the intitial test levels. So how do you estimate 30,000 boe/d?