Ran some numbers through the good old GPT so we can see what our...

Ran some numbers through the good old GPT so we can see what our FCF and Earnings look like.

This looks quite solid for the price we're paying. Nice one BOD.

1. • Net daily production: ~2,000 boe/d (~730,000 boe/year).

   • Assuming an average gas price of $7/mcf and a conversion of 5.8 mcf/boe:

     • Annual gas revenue: (730,000 boe * 5.8 mcf/boe) * $7/mcf = ~$29.6 million.

     • Condensate contribution (estimated at 2% of total production): ~$1 million.

     • Total revenue: ~$30.6 million/year.

2. Operating Costs & Net Cash Flow:

   • Operating costs at ~$2.2/boe: $1.6 million.

   • Royalties & taxes (assumed at 15% of revenue): $4.6 million.

   • Debt servicing (assuming $22 million debt at 8% interest): $1.76 million/year.

   • Estimated EBITDA: ~$23.3 million/year.

   • Free cash flow (after debt repayment & contingent payments): ~$15–18 million/year.

3. Payback Period & Returns:

   • Initial acquisition cost: $30 million.

   • Payback period: ~2 years based on free cash flow.

   • IRR expected to be >25%, given stable production and contracted gas sales.