no brainer- going much higher?, page-8

a few points i have harvested from other posters and other places which should perhaps again be canvassed here for the benefit of our new shareholders ... thanks to the original authors.

# Henry Hub gas futures price
Dec 2010 -- $5.550
Jan 2011 -- $5.659

# ''the cost of piping up PB1 once PB3 in connected: 4" carbon steel @ $35.60 per 6m length, distance to PB3 = 10m, Total cost $356.00.''

# also worth referring back to discodaddy's great post of a month or so ago. he based his figures on flow rates of 5mmcfd from para3 and news-driven expectation of 10mmcfd total from three weels given the reworking of PB1&2. He also tried to put a value on field development rather than a 'sale of asset' perspective. This is what he came up with:

''Field Development:
Reserve (P50) 85.6 BCF
Recovery p/well 4 BCF
Wells 21
Cost/Well $5,500,000 USD
Gas Price $5.00 USD per MMbtu
Total Gas Value $428,000,000 USD
Drill Costs $115,500,000 USD
Nett Gain $312,500,000 USD
Gain per Well $14,880,952 USD
Shares on Issue 471,386,404
Value to SP 0.66 USD
AUD 0.93 USD
Value to SP 0.713 AUD

Notes:
1. Recovery rates per well are based on AZZ's experience.
2. Cost per well is as per GDN's January announcement
3. Gas price is based on likely near-term price. If you don't like it, use the current spot price of 4.02USD.
4. If you're more optimistic, go with a gas price of the recent-year average of around $6.50. I'll save you doing the maths - it comes to 100 cents per share (AUD).
5. RPS Estimates will (presuambly) go up some time post PB3.
6. This estimate assumes commercial flows from PB3.