asia oil and gas assembly, page-4

i am no gas junky BUT just looking at numbers in the report on page14, they will produce 600million cubic feet per day and they receive $7.24 for 1000cubic feet of gas..which means they get 600,000 * $7.24 ($8.54price -$1.3 lifting cost)= $4,344,000 per day...is that right? jeepers

here is what Gavin Harper has said about the cashflow - the link to the article is below

"RISC has modelled assumptions in developing the estimate of $1.8 B on gas sales prices of around $7.50–$7.60/MM scf, while production costs are around $2/MM scf - a very significant margin there. Each block will produce in excess of 200 MM scfpd, so overall 400–450 scfpd at plateau, which, to put that in oil context, is equivalent to about 75,000 bopd. It's huge on any scale. In terms of revenues, it plateaus around $400 MM pa, of which about $300 MM would be our earnings. So they're very large cash generators once they get into production."

http://www.pnronline.com.au/article.php/117/1964

THESE ARE HUGE NUMBERS