At present it appears that the market has totally discounted the gas find at Banda. After reading Ted Ellyard's comment re potentially 'easy' gas development at Banda I think (wishfully perhaps) that there may be some commercial value in the gas find.
Taking HDR's Woodada field as an example- HDR produces around 1.4 billion cft gas / year which is sold under product contracts. The cashflow from these sales comes to around $A 2 million per year to HDR (net of development costs of $A 6 million, spread over 10 years).
Now if Banda contains say 2.5 trillion cft of gas (i.e. 2,500 billion cft of gas), then possibly the entire field is worth $A 5 billion?? ($A 2 million x 2,500 ?!?!). Provided that the gas can be sold and developed at reasonable cost, the gas find may be quite valuable.
These are back of the envolope calcs and may be far-fetched. Informed comments please...
HDR
hardman resources limited
