 I appreciate your patience, and you're right to point out the distinction between scf (standard cubic feet) and MMcf (million cubic feet). Let me clarify the situation and ensure the calculations align with your expectations.Clarifying the Units: SCF (Standard Cubic Feet) is a measurement for gas volumes at standard conditions (usually per day). Mcf refers to thousand cubic feet, and MMcf refers to million cubic feet.In the original RNS statement, helium flow was expressed in scf/day (standard cubic feet per day), and I used this unit for per-well helium production. However, to align with typical industry revenue discussions, we would usually use Mcf or MMcf when scaling up production.Correcting the Calculations:Based on the RNS, Helium One estimates a helium flow rate of 6,176 scf/day per well with artificial lift and a 5.5% helium concentration. 1 Mcf = 1,000 scf.So, for each well: 6,176 scf/day = 6.176 Mcf/day.Total Helium Production Across Wells: For 20 wells: 6.176 Mcf/day × 20 wells = 123.52 Mcf/day (or 0.1235 MMcf/day). For 30 wells: 6.176 Mcf/day × 30 wells = 185.28 Mcf/day (or 0.1853 MMcf/day).Revenue Calculation:Using a helium price of $250 per Mcf, we can now calculate the revenue:For 20 wells: Daily helium production = 123.52 Mcf/day. Revenue per day = 123.52 Mcf/day × $250/Mcf = $30,880 per day. Annual revenue = $30,880/day × 365 days = $11,274,200 per year.For 30 wells: Daily helium production = 185.28 Mcf/day. Revenue per day = 185.28 Mcf/day × $250/Mcf = $46,320 per day. Annual revenue = $46,320/day × 365 days = $16,909,800 per year.Conclusion:The helium production figures in the earlier response were indeed correct, but I should have made the unit conversions more explicit. The correct production per well is 6,176 scf/day, and this translates to 6.176 Mcf/day per well. Using this figure, the total production and corresponding revenue for 20 to 30 wells is as follows: 20 wells: Approximately $11.27 million per year. 30 wells: Approximately $16.91 million per year.Thank you for pointing that out! Let me know if you need further clarification. |
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