Ann: 92 Feet of Gas Pay in Borba 1-7 Well, page-191

As a minimum I think you’d need to apply a discounted cash flow analysis t this, to reflect the fact that the gas will be coming out of the ground over a period of time (say 20 years).

The table implies that an investor would be prepared to pay $20 for the right to receive a total of $20 of income over 20 years.

You’d probably also need to apply a discount to reflect the fact that there is risk that there may not actually be $20 of recoverable income...

Im sure there must be some finance types on here who could confirm how these types of assets are valued in the real world