I think 4 is more than realistic. O1 initially flowed at more than 6; and on paper O2 should be more optimally positioned.
At 4 mmscf/d I'm getting 1.548 pj/a. MEL has a quarter share, so 0.387pj. Factor in 20% impurities and we have 0.09675 pj net to MEL per annum. At $13/gj that is $1.25m, so ~300k per quarter. That means 6mmscf/d = ~450k per quarter.
The flipside of that is that they'd only need 2mmscf/d to break even overall - noting that everything will decline.
MEL Price at posting:
0.7¢ Sentiment: Buy Disclosure: Held
