The results of CPN's Ja3a production testing are out, and judging by the falling share price the market is not impressed.
But is the response an over-reaction? While the recoverable reserves of 1.1 billion cubic feet are well below estimates, the absolute open flow rate still suggests a hefty swag of revenue will come from it.
At European gas prices (which are what? - just under US$4.00 mcf), this 14 million cubic feet a day would represent a daily revenue of some US$55,000, or over US$1.5 million per month. It sounds even better in Aussie dollars - A$78K and A$2.1 million.
With CPN having a 60% interest in the well their share of this would appear to be a pretty juicy result - shorter well life notwithstanding.
Is this likely? Any gas gurus out there that could give a hand on this one?
CPN Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
