4 wells is prob conservative, but remember they can only drill...

4 wells is prob conservative, but remember they can only drill where the gas is and we should assume it is not evenly spread to the acreage boundaries ie it may be concentrated all in one area.

However, if this 1st well is the deal, well it could upgrade the whole licence area altogether, hence the shutting up shop on the drilling results info.

Bear in mind these wells take a while to drill, and do cost a far whack on money, but boy if it flowed at >5mmcf a day, well heaven knows what the market will think of that, but sure to be well north of $1.

Bear in mind that gas may be worth $3m per BCF in the ground, but the quicker it comes out the ground, the higher the NPV of the licence and naturally cashflow now is better than cashflow later.

If some of this was to come to pass, well we may look back and say how undervalued AZZ was at 86 cents, but right now we are going guessing until there is more info to go on.