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14,981 Posts.
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15/08/06
13:22
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valuation....
Good news.
Next 5 wells started.
The first 10 wells are now producing.
Importantly - how much is each well worth - I think this is really important so we can properly value IMP now.
I have thrown this together. I am no miner, or numbers man, but just did it on the last announcements - and assuming price of gas around $5
Could be wrong, but just to throw it out there.
Valuing IMP
(Flow rates are based on announcement 16th June – avg 950mcf per well)
950 mcf a day x 15 wells x $5 (current price of gas) = $71,250 a day
$71,250 x 365 days a year = $26,006,250
Over 40 years = $1,040,250,000.00
Less $3,750,000 costs for each well ($250,000 for each of the 15 wells)
Total revenue over 40 years:
$1,036,500,000.00
We all know it is undervalued atm, so can anyone make a comment along these lines?
Cheers
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