F they are good figures"Conceptual development scenariosIt is...

F they are good figures

"Conceptual development scenariosIt is very early days into this project, but in its Expert Report, RISC outlines a staged developmentconcept, which could exploit ~1000 Bcf of gas, initially to displace diesel from mine-site powergeneration. The concept is to produce 55 TJ/d (20 PJ p.a ) over 25 years. Export agreements toChina would be needed to underwrite a larger project. To fully exploit the 3292 Bcf resourceidentified in the Nariin, Enkhen and Biluut regions, RISC postulates 400-1500 wells would beneeded, and which would be a major undertaking for any company. At this time, the JV does nothave the financial capacity and organisational depth that would be required to deliver a largeproduction project. Securing funds and finding partners with development skills are critical toTMK’s progression beyond an exploration phase.To put some perspective around the value of ~1000 Bcf, if proved to the level of 2P reserves, inAustralia currently, companies that have commercial 2P gas production are priced betweenA$1.20/GJ and $2.10/GJ and so a ~1000 Bcf resource, would command a value of between ~A$1and A$2B.A ~20 PJ p.a. gas contract, from the perspective of revenue potential, with gas prices at ~$10/GJ,would deliver a revenue stream in the order of $200M p.a.Thus a key observation is that if the TMK can progress and prove and produce such volumes, thenthe upside compared to the current market valuation is multi-fold"

nearby is 350 mill pa. so that over a billion mcap easily.