Blokes, suppose they get 8mmcfd. The average wellhead price for gas in Utah in 2009 was $3.15. Even on that price, GDN's gross revenue would be US$9.2m p.a. - but wholesale gas prices in the US are currently running at about 20%, or $1.30, less than last year, so the well head price would presumably be less than $3.15.
So by the time they pay taxes, running expenses and any royalties (do Eclipse still have the right to buy back in?) they will have enough left to drill one well a year.
- Forums
- ASX - By Stock
- GDN
- marginal or profitable
marginal or profitable, page-27
-
- There are more pages in this discussion • 10 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)