Without hard numbers -- purity ranges should have been be tightened by now -- and the above "revenue math" being in unspecified currencies, it is daunting to be close to accurate.
What I garner from the news, sorry no math exercise, is that BNL expect a 98% purity to start (capable to becoming purer) at USD 100 to USD 120 Mcf Operating Cost. The spot price, which BNL can market for unhindered by offtakes, etc. (because of this deal) ranges from USD 450 at 98% He, to USD 3000 for 99.999% He.
This creates too many questions for me: How much sold at which purity? How much raw gas going into the plant and by when? What is the steady-rate, and its profit?
There are two answers I'm fairly confident about. First, after further drilling the rest of it's just "plumbing." Second, the sp will go UP a dair bit from today's close.
My portfolio has BNL with a "spec amount" of cash... less speccy today means to me a bigger position is risk adjusted acceptable!
OV *** *****
PS To repeat from above, p.6: "Mcf thousand cubic feet MMcf million cubic feet."
BNL Price at posting:
2.7¢ Sentiment: Buy Disclosure: Held
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