shrewd crude report valuation, page-41

I find this discussion to be quite amusing and highly irrelevant to whether NWE is a good investment.

1. If NWE proves up multi-TCF's then will it matter what the price of gas is? At 70m market cap, you'd have to agree that it will go up to many many times this in capitalisation.

2. NWE is not ever going to become a major producer of gas. It will be taken over. Guaranteed. Production and gas price economics will be someone else's problem.


persistent1, you are gilding the lily.
Perhaps splitting hairs until you reach the "ahhhaaaa gotcha" moment of uncertainty. Nobody "knows" what will happen to the gas price in WA. However, you can be certain supply/demand will work itself out.


For investment purposes, do you really need to know whether NWE is going to be a 10 baggers or a 30 bagger?

Not really. You'll take whatever the highest bidder eventually pays to take it out.

THere really is no use here for such sophisticated projections, the likes of which you are attempting to define.