I listened via Tunein Radio to Francis Egan taking calls from listeners on BBC Lancashire last night. As expected there were plenty of keen anti-fraccers keen to vent spleen. A fair bit of support though too from callers recognising the potential for regional economic revival. Egan commented that Cuadrilla's expectations for recoverable gas at a conservative 10% recovery was at least 20 TCF. He valued this at $134 Billion pounds at current gas prices....!
That in anyone's language is a stupendously large future revenue flow. Extrapolating.. 20% recovery of the widely hinted 300TCF....this revenue figure would balloon to 60TCF worth some 402 Billion pounds @ current prices. Big.
What is 56% of that worth? Or more pointedly, what is AJL's direct 25% holding worth if astutely marketed now?? Note that AJL's direct 25% stake also encompasses the shale oil prospective Bolney tenements in addition to the "world-class" Bowland asset.
Raving
AJL Price at posting:
$1.55 Sentiment: Buy Disclosure: Held
