For clarification. The total resource they quote 220 bcf P50 recoverable appears to be for both Pennsylvanian Ismay and Barker Creek) and Missipian (Pinkerton Trail and Leadville). Upside is 550 bcf P10 recoverable gas.
I have been told the estimation is reasonable but subject to change very much for the better depending on Para#2 results.
As we know accurate testing of the Missipian structures could not be achieved by Para#1 due to salt intrusion / damage during the extended reaming operations.
Even at 220 bcf recoverable at low side of US$4 mcf the inground reserve is worth US$880,000,000. Share value based on that fully diluted is about $2.20.
Several wells of course need to be drilled which from August should be funded by both oppie conversion ($20 mill June 2009) and sales gas.
Para#2 will bring much more upside to that.
GDN Price at posting:
6.0¢ Sentiment: Buy Disclosure: Held
