At a flow rate of 13.5mmcfd at Marlin 1 with BUR`s net revnue being 23.01% this equates to 3.105mmcfd for BUR. Multiply this by $10,230 mmcf(million cubic feet) equals $31,764.15 U.S per day. Multiply this by 365 days equals $11,593,914 U.S p/a.
Now as we all know these are very early flow rates, and I would expect it to decline by around 50% within a few months going off other wells performance. Another point to take into account is that $10.23 mcfd (thousand feet per day) is a pretty high price to work these figures out on bearing in mind Gas is in demand during the cold months i.e winter, needs to be taken into account. Also company tax may need to be considered when the company becomes positive cash flow and starts making money.
Taking the first two critical points into consideration I would be happy to see Marlin add 4million U.S for the first year, which adds great revenue to the other exsisting wells.
BUR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
