Well, I had to reread the PR after you said a well was producing 7-10 bbl per hour. In the heyday of Texas oil the avg well only produced around 22-23 barrels a day. Now you do have to take into consideration that Texas had about 200,000 producing wells online at that time so I don't actually know what the highest and lowest numbers were but just thought it was important to show the other side of the spectrum.
If the average well is producing say 25 bbl/day then 7 wells would give you 175 bbl/day, 63,875 bbl/year, and roughly 5323 bbl/month. 5323 x 100 is $532,300 per month total revenue giving MMTE roughly $20K per month.
I am long and not trying to be negative. I think that even if we meet somewhere in the middle you are creating enough revenue to pay salaries, expenses and keep this thing going without the need for dilution. That leaves your income from the wells you drilled available for additional drilling, and with a high success rate I could definitely see 9-12 wells online by the end of the year. So I think these small interests in wells are a positive for the company.
On a side note, I strongly disagree with Jason that oil will see $50. I think oil will balance out between $80-90 eventually. If the price of oil, and in turn, gas drops our demand will spike back to quickly to let it fall that far. Everything from taxicabs to JB Hunt has made cuts due to the price of gas/diesel and once it starts to drop they will jump back on fast. I would say I hope I am wrong but I have a lot more invested in Chevron than I do MMTE and I personally hope oilstays above $75 at a minimum.
This is all just my opinion of course.
