Ann: Borba Gas Shows Continue in Key Target Formations, page-224

Hi Chand

Great information thank you.
If average gas price is (as quoted) $5aud and development risk (as quoted by the company) 80% how does the revenue at well go from $5aud to $0.75 to $1.00?
What are those costs that take up around 75% of the value?
The company has also already indicated that if there was a sizeable zone that is flowing they would drop another drill to drain it faster.
The gas line to hook up is 5 miles away which is nothing so apart from a bit of capex and perhaps another drill cost what other major expenses are there to bring the revenue profit down ?
Also do you have any idea how price earning multiples are applied to a well like this should it prove commercial or is that really size dependent? Industry average around 15.
Thanks again for your input. These are much more productive discussions than some others lately particularly on XST.