AJQ 0.00% 10.0¢ armour energy limited

"The restart of the LPG circuit included the restart of existing...

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    "The restart of the LPG circuit included the restart of existing raw gas wells. To date only sixteen existing production wells have been brought back on line, and the Company is gradually bringing all available existing raw gas wells back into production. When all wells are back on line, the Company will have greater flexibility regarding how it chooses to operate the Newstead Gas Storage Facility. Prior to the successful recommissioning the KGP at the end of December, Newstead was the only gas that could be processed for sale. Now with the LPG plant on line, production from the existing raw gas wells plus Newstead gas is expected to provide Armour Energy sufficient production capacity to sell gas, at current market prices, above its contractual commitments under the gas sales agreement with APLNG."

    I read it as...

    All of the reported sales were made to APLNG under contract.
    APLNG Contract is for 1.8 pj/a or 1800 tj p/a. We can produce 9tj per day at current capacity as per Jan 2nd 2018 announcement.

    1800 tj / 4 Quarters on average 65 days per quarter = 6.9 tj per day is going to APLNG
    This leaves 2.1 tj for us to sell "at current market prices, above its contractual commitments under the gas sales agreement with APLNG."

    + Condensates/LPG, I forget the yield maths, it has been posted in the forum here before.
    + Oil Production from Emu Apple

    September Q1 only contained Emu Apple Oil sales of 260k. Assuming Q2 production is the same at Emu Apple that means APLNG gas sales were the extra $2.6 mill.

    65 days in the quarter X 6.9 tj = 448.5 tj or 448,500 gj
    $2,600,000 / 448,500 gj = $5.79 per gj for the APLNG gas.

    Good work to the management I say. Ticking off the to do list one by one and finally we are a real PRODUCER. Lets keep putting one foot in front of the other and im sure some big things will be on the horizon.

    It would be nice to get some tech prodcution details included in the quarterlies however to save all the guesswork around revenue figures for the future, a very small criticism relative to what has been achieved by all at Armour in the last 6 months.

    All IMO, DYOR.
 
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