That computes to maybe $15 million in gas sales just to this one buyer over 20 years to Tatanga give or take a few billion. Now it isn't difficult to imagine IVZ may probably have at least 10 other clients of this size...who knows? So now we are popping some numbers around to give everyone a few mouthfuls of biscuit to chew on. $165 billion over 2O years or $8 billion per year...should take 'em another several years to gear up a tad and get their first couple billion in eh? I have no idea of the logistics re how many wells will it take to earn a $billion per year but we roll on...how much gas does one decent production well give up in a year? Maybe one gigajoule to 1000 cubic feet (its more like 950) of gas at $7 per gigajoule. Remember my sums are probably very wide of the actual mark but hey I am having a go so we can extrapolate just how much IVZ can earn per year for the next 25 years...another 4 or 5 years to get the show on the road (hoping we don't have to tie it up with wire) and the production earning start to get very serious building big time year on year as long as Caborra Bossa Basin can keep yielding its gas...frack schmack they will get it out of the ground as best they can if its there. So how much gas does a well produce on average per year...that gives us an idea of how many wells we need to service the demand...Tatanga is wanting 1.4 trillion cubic feet over a 20 year period. Lets say each well is going to produce 5 million cubic feet per day...$35,000 per day x 365 is around $13 million per year per well. (wells can produce an average several times this if decent). The number of wells they sank in the USA in quick order was amazing...Marcellus Shale for instance but hey unlimited funds and demand...hundreds of wells per year went in. So now we reckon that one decent well can earn $13 million per year they need to drill a giant number of wells each year for the next 5 to 10 years. But if they can sell the gas and those buying the gas can sell the power they generate why not? 500 wells will go close to getting IVZ (or whoever buys them out) $7 or $8 billion per year...that is what we are looking at given the future wells are hissers and rippers. No reason many or most of the wells they dig from now on in shouldn't yield big heaps of gas is there? This sort of reasoning serves to explain why I bought another very healthy tranche today and I shall keep topping up. Thought I would change the vibe from what if it doesn't flow or this or that as the down rampers start owning the forum. Well look at reality...there is shite loads of gas they have discovery and two wells hit gas 2 from 2. Given some time what isn't to like...its multi multi bags as far as I am concerned and I am in for the long haul and the solid promise of massive profits down the track. The great ozzie company which at the moment SM is tying it up with wire to keep the show on the road... https://duckduckgo.com/?q=hey+true+blue+youtube&atb=v344-1&iax=videos&ia=videos&iai=https%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv%3DJR8p5nRVJ1s
IVZ Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
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