"A quick ROUGH guide on a 2 tcf say 60 % recoverable gas /condensate will equate to 1.2tcf commercial flow and @ say $5/1000CF well head price this would equate to circa $5B REVENUE."
Note the two words in Caps
1: ROUGH ...meaning approximate
and
2:REVENUE....meaning GROSS income not the NETT (after all costs factored and deducted) profit.
So there is no implied suggestion that this is a nett profit figure.
If I have time later today I will post a valuation of the 2tcf with respect to CTP....and how I come to a "Rough" $5B figure for that amount of Gas.
Until the Gas is found the revenue equates to zero.
Upon discovery and verification of the 2tcf estimate,JH will have a number of options to commercialise and monetise the Hydrocarbons. The quickest and to me the most advantageous path is for a cashed up Farminee/JV partner to come in an bring the show to production.
This is one hell of an expensive business to be in ..Survey/Drilling/extraction/conversion to end product /transport/marketing costs,are huge.
CTP does not have the money on it's own to do this and will not have in the near term..SP too low..too many shares out..etc,etc.
Once the Gas is found CTP will need to partner a cashed up large scale player to monetise the find...and from what I read, that is exactly what JH has in mind ,the feelers are already out there.
So you are right..the gas will not leap from the ground into your cars gas tank or stove for that matter...at this stage....but it will be depositing money into CTP's bank account once production starts and some time after THE GAS IS VERIFIED AS COMMERCIALLY VIABLE in the first place.......Just to clarify my previous post for you Karll.
Cheers,
HR
Strictly my take on it ..I have my money where my mouth is. DYODD.
CTP Price at posting:
35.5¢ Sentiment: LT Buy Disclosure: Held
