At Mahogany, the most recent well for which there are several years of production data has a total of 3.8 Million barrels of oil equivalent in 5 1/3 years. This in one of the lower sands, but not the best sand. The longest producing well in the field has produced 6 mmboe since 1997. Mahogany started producing in 1997 from 4 wells at an initial rate of 45000 bbls/day with 100 mmscf/day of gas. Production is now down to less than 10000 boe/day, but the new wells being brought on line will significantly increase that, as you can see from the article. The Mahogany facility cost $200 million in 1997. It is the same type of facility in the same water depth as would be required at Tau, but it would cost more now due to inflation. Total production from Mahogany to date, is 47 mmboe. Assuming you net $35 per barrel after expenses that is a value of $1.6 billion net to W&T over 21 years. This is a little misleading re: Tau, because Mahogany was dependent on just 5 or 6 wells in some pretty bad reservoirs for many years. W&T has been very timid and cheap in developing Mahogany. If they had aggressively developed it as Gulfslope/Delek will Tau, the results would be very much better.
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