PAN ANDEAN RESOURCES......Discussion thread

rhodesc - 24 Dec'02 - 10:52 - 10011 of 10021
'' You are a correct. Thanks for correcting me.
''Only $330,000 per annum then at 1% royalty instead
of 2%. Still nice for doing nothing eh.''


Afraid your still wrong rhodesc ( The Wheel at iii )
your using $ 4 to 5 as an all year figure but as you should
know the gas price is not sustainable at that price
and will start to fall in a few months time.

Additionally you must work out the difference in the
production from well 1 at what it used to be and what
it is now, 20 mmcft – 6mmcft = 14mmcft down because
unless production rises at well 1 there is now a net
loss of 14mmcft a month at 2.1% a month in revenue.

( or more if we use Edgeins past figure of 30mmcft
production for well 1)

You must also remember that well 2 production could fall off over time,
( look at well 1as an example ) its not as easy as it looks is it rhodesc.

So as you will see rhodesc your figure of an additional
$ 330,000 Is wide of the mark and very misleading.

All IMHO DYOR .

J.B.