I agree MEL is undervalued. With the current market cap, it doesn't need a huge production volume to be rerated.
The AGL contract seems to be just under $10 per GJ. See @stumpytrunks's post 65403877. This gives $33.5 million revenue for the joint venture at $10 per GJ (max). MEL's share would be around $8.5 million per year. Obviously, the joint venture made their calculations and found it to be commercial.
If the maximum capacity is 5.84 PJ, there is potential for up to 2.5PJ per year from Odin, which is why they are planning another Odin well. At $12 per GJ, the numbers look better for Odin: $30 million from 2.5PJ per annum for the joint venture. They need to drill one more Odin well for this.
A major unknown is the STO processing cost.
MEL Price at posting:
2.0¢ Sentiment: Buy Disclosure: Held
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