+$170m rev pa for $400m - No Thanks, page-3

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khanjee

1,378 Posts.

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19/12/22

00:07

Post #: 65360460
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Originally posted by alexei ii: ↑

Now you're talking.
You left this bit out....If the plant costs $500M, NWE will need to borrow $100M...and it can pay it off in 6 months. CE reckons he can build it cheaper - maybe hes a grinch and does not want his JV partner to benefit from his cheap work.

Now here some more facts:
the current interpretation sees the Lockyer structure at 160 km2
the company NWE (and ERL) believe 102 km2 of the structure is gas filled.
the permeability they recorded was 500mD (500mD is a gas pipe) - its a crazy high number, because the Kingia is a crazy high permeable reservoir (and it gets better the further east you go - my interp).
the drill test indicated 100 bcf per 3km2 Gas in place. by extrapolation, 102 km2 = 3.4 TCF GIP.
If the 160 km2 is full...thats 5.3 TCF GAS in Place.
it has condensate too.

Can people see how big Lockyer really is?

Now consider that there are another one to three Lockyer fields in the JV ground. Lead E is one of them.

Why jump off the train now?

The board should say it is not possible to arrive at an appropriate valuation for the company at this time. The company is not in a fire sale situation and it is fully funded for the committed expenditures. We recommend hold. Re assess after the FOUR holes have been drilled and the 3D seismic is back.

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Perfect! Minimum Lockyer2 plus NED1 & 3D seismic. After that i’m happy to listen to any offers. MIN should wait for another 12 months
NWE Price at posting: 5.9¢ Sentiment: Hold Disclosure: Held
8 Upvote

0 Great analysis

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