Taken from the announcement once producing they expect to produce 3000 mcfpd Henry Hub price $4 per mcf
Quick calculation 3000 x 4 x 0.667 - 20% Royalties x 365 days = U.S $2,336,000 a year. Not a ground breaking revenue but hopefully the information gained from this drill will really benefit the company going forward. I have to admit rather disappointed with the reaction to the share price on this announcement. I still think we are still feeling the backlash from Borba. It looks like we will only really see a steady increase in the share price once the revenue comes in.
SGC Price at posting:
3.9¢ Sentiment: Hold Disclosure: Held