Was going over GDN today and they are gas explorers in the US to and the holders where excited, The have e done a valuation of what is achievable at GDN.
After reading there valuation in a P50 Field of 85bcf You start to realize how special H1 is with its 30bcf+ + condensate and with M1 a p50 of more than the whole of GDN's field and thats without the numerous other traps in the field. Not to mention woppa.
A holders valuation of GDN's field
Field Development: Reserve (P50) 85.6 BCF Recovery p/well 4 BCF Wells 21 Cost/Well $5,500,000 USD Gas Price $5.00 USD per MMbtu Total Gas Value $428,000,000 USD Drill Costs $115,500,000 USD Nett Gain $312,500,000 USD Gain per Well $14,880,952 USD Shares on Issue 471,386,404 Value to SP 0.66 USD AUD 0.93 USD Value to SP 0.713 AUD
Now there field is not wet and does not have the condensate like the JV's field so more upside. Now GDN has a MC 24 mil and thats on 1 well with 4bcf 1p. Not knocking GDN but THe AKG NSE BUR JV certainly is undervalued. When you start to compare to others they are cheap and most likely on fair value on H1 and brasher H1 should be 14 cents. I can't really add any value on M1 till we know more and I don't want to say silly stuff like $1. But if the JV are successful with M1 I think it derisks the field a whole lot and other traps should be added to the upside and it will grab a whole lot of attention from instos and longer term investors on upside possible 20+ cent downside 7 cents but it should pull back to 9 to 10 cents on fraccing and flow rates of H1 should M1 be dry.
BUR Price at posting:
9.0¢ Sentiment: None Disclosure: Held
