going to 80c , page-22

Great Postings Niel,

My calculations arrive at similar figures however I have been a little more conservative with a P.E of 6? I see you used a P.E of 10 and like you say thats conservative because wells from the area have been proven to flow for around 15 years.

I guess at the end of the day a valuation on any company can be valued up or down at the mercy of P.E?


On a fully diluted basis my valuation arrives at 29.2cps on current two wells production plus 6mmcfd from Jet 3(A very conservative figure, as we are expecting up to 15mmcfd)On a hypothetical flow rate of 15mmcd from Jet 3 my valuation then arrives at .45cps

Basically, for every extra mmcfd to BUR(Million cubic feet per day)we can recover on top of these three wells, this can add around another .02cps