When gas companies report initial production, they refer to ip as Mmcfe/day. Is Mmcfe a different value than Mmcf? If 20 Mmcf is $120,000 @ $6 Mcf, would 20 Mmcfe be the same monetary amount?

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Hey JM,
This was posted by one of the resident pros. Mmmarrrkk is a Reservoir Engineer I believe. Hope this helps.

Permalink Reply by Mmmarkkk on October 20, 2008 at 11:37am
when the term "equivalent" is used, such as BOE or MMCFE, this is a way to convert oil to an equivalent volume of gas or convert gas to an equivalent volume of oil. So, when they save BOE, it is equal to the mcf of gas divided by six plus the barrels of oil. Or if they quote mcfe, then it is the barrels of oil timex 6 plus the mcf of gas. Some companies relate everything to barrels (most major O&G co's) and some relate everything to MMCFE (large independents and small co's that are mainly in gas plays, like CHK, HK, etc.) Just a way of trying to compare wells. So if a well makes 10 BOPD and 6 MCFGpday, then it is making 11 BOEpd. then if you want to compare that to a gas well, you can convert the gas well production to BOE's and compare.

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