Basically a sideshow to the bigger play at WErr/SErr.
2P-2C of 54+32 PJ gross.
37 Tj/d equates to 13.5 PJ/a. Field Life of 54/13.5 = 4 yrs for 2P depletion (or ~7yrs for 2P2C 86 PJ's) Outlay: A$14.2mil (plus 2 wells drill/test costs)
Use a gas price of $4-5-6-7/gj to work out gross revenue for 13.5 PJ/a gas for 4 to 7yrs. Minus costs, taxes & at a 10% discount rate should b the gross NPV10. Divide by 2037m Shares & split to Net equity. (or Assume 5yr fieldlife, apply a 5yr discount factor for 10% rate, ie 3.79 x Avg Cashflow minus Outlay = gross NPV10).
Waly-1 produced 260 mmcf & 1493 bbls condensate for 4 months till July 1972.Cant remember the gas price back then (under a buck?). STX's new figures should do better than that, as this part of the field wasn't drained 50yrs ago.
STX Price at posting:
27.5¢ Sentiment: None Disclosure: Not Held
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