Johnboy,

Just watched the repeat of Thursday's Market Call with John O'Connell and he was suggesting that well drilling costs were going to be around 5 million per well and that there would be substantial dilution over time to share holders but he forgot to mention anything about the horizontal frac technology that is also part of this project and may be used to get production rates up as much as 4 to 5 times the norm. QEC estimates well drill and tie in costs initally at 3.5 million and then to reduce after that untill year 4-5 then a 3-4 % increase per year after that. Assuming 100 acre spacing and a total of 10,500 wells ( 40 rigs)at 5 mill a pop... the # is much larger than 3.5 mill with a reduction after initial tie ins...soooo when you really look at John's comments on Thursday night and do QEC's mathamatics then JOHN was completely out to lunch. But he may have been correct about one thing...Long Term Henry Hub price $8.00. Now add $ 1.00 to $ 1.05 on the NYMEX price for proximity to market and QEC is looking like a real bargooooon and John O'Connell is looking like he has to do some homework before he gets back on BNN. I did like his tie though.

JQ:)