So many ways of valuing it , even the experts have different opinions , the 568 BCF (billion cubic feet) potentially recoverable is one estimate shown in the recent ASX announcement
To me this is a best case scenario and as I always take these O&G guys for real then get hurt I normally estimate only 10 to 20% of what they state so lets say there is 100 BCF recoverable .
The gas is paid per 1000 cubic feet , (that is if it is at ambient room pressure of 15psi at sea level ) so like if you let the gas tap on it would displace a 10 foot by 10 foot by 10 foot high room of air with 1000 cubic feet of gas (CH4)
That 1000 cubic feet of gas at the well head , changes in value (spot price) all the time but you have to give it an estimated value going forward .
I will use $5.00 per 1000 cubic feet .
so the above 100 Billion cubic feet /1000 = 100 Million
100Million * $5.00 = 500Million insitu value .
But you can use what ever figures you like I was begin ultra conservative I feel use the experts opinion of 568 BCF then the it is 5.68 * 500M = $2.8B
Use a higher gas price and the $2.8B looks conservative , but without test wells producing and showing time lined depletion curves and good estimates on the swept area for each well its all pie in the sky , then there is the cost of drilling and fracking and well head connection costs to determine if the wells are economic to produce the first place .
BAS Price at posting:
5.5¢ Sentiment: Buy Disclosure: Held
