value if they have 80bcf, page-17

ok... 80 BCF gas in place ...
With 65% recoverable,
thats 52 BCF...

which isnt alot...

at Aus gas price of $8 per mcf...
I come up with $416 million dollars in revenues over fields life...

416m is not enough cashflow to get this company
off the ground, because gas flow rates are very very very rarely large enough to support a company on a cash flow positive basis, and because revenues are longer term...

other reasons why 416m is not large enough...

Company will try to expand its operations costing money...
further exploration/appraisal drilling...
reinvestment of revenues gets spent...



I think the market has reacted accordingly, because risks are still present...

this is the first day ive looked at GDN...

on first glance I think theres better stocks out there...

before you rant and rave about my post...
and all that... do some research...

Sure there wont be posters who like my write up, but you have to research the region, Onshore US and upon this you will see what ive seen...
here is the list of US Onshore/ GOM (ASX stocks)
ADI, AVD, AMU, AZZ, AOK, AKK, BCC, BUR, EXR, ELK, EMR, ETE, AUT, GGP, KTE, KOG, LIO, MAE, ODY, PSA, FAR, PYM, QPN, RFE, SAE, SSN, SGY, STX, SUR, SEA, TEX, TXN, WHN...

upon doing some research you will quickly see that even 3 years ago, these companies were raising cash...
placements, SPP's etc...

it is of my view of the region, and GDN, that becoming cash flow positive is such a large gamble that its not worth taking the odds...

there are only 3 onshore US (ASX) stocks that are cashflow positive... STX, PSA, AMU...

if you could get the large front end revenues, then yeah GDN, would be there... but thats just not the case with gas, as it is also a longer term producer of more stable flow rates...
I would bet that this would never sustain cashflow positive...
and therefore, I will move on and look for new oilers...