3.8mmscfd from 1 of 3 zones, page-5

that is a mighty gas flow from one well. I wonder what 4 or 5 producing wells would get to.

5mmcf a day? 10mmcf a day?

Tell you what, let's do some maths at 7.5mmcf a day.

7.5mmcf x US$10mcf = 7,500 x US$10 = US$75K gross a day.

Very crudely, let us assume $2 a day for costs and commissions and $2 a day (frankly I am guessing here) for taxes and other costs and say they are making US$6 a day in their hands.

7500 x US$6 = US$45K a day = A$45K a day (assuming parity for A$).

IPM = 55% x A$45K a day = A$24,750 a day x 330 days = A$8.2M a day net earnings.

IPM mkt cap = 78.5M x $1.18 = A$92M

A$8M over 78.5M shares = 10cps net.

50% NPAT payout ratio = 5cps, on top of 6cps already coming out of Selmo = 11cps net.

Price is $1.17, so 11cps net/1.17 = 9% yield.

Fine by me.