GREY:PENFF - Post Discussion
Post by
pennymaker69 on Jan 27, 2012 1:44am
I need to correct myself.
It looks like the costs for the tie in has been paid. It seems it's 1 million to drill and 1 million to frac. + tie in costs. This does leave Pen with some left over cash. They might need to do a small PP to finsh up the 3rd well. But this would also depend if they are driling a long well again. There is a chance they might stick to a smaller leg.
So the cash flow needs really depend on what the flow rate is of this 2nd well if they will do a longer leg or not. Long term gotta ask... IS the Gas and liquids in the ground or not? Yes they are. It just might take longer to develop.
I need to see what the flow rate of the 2nd well to see how bad this really is. But it doesn't look like it will be the same as DEE's well.
With them working on 2 drill pads with 6 wells planned in the area it looks like no matter what they are going forward to getting this land drilled and into production. By next year this company could be making some big time money.
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