Big Drill Target Big Buying, page-54

Looking to throw some numbers around as a starting point for a valuation. The numbers could be completely off, but hope it facilitates some sort of discussion and thoughts around where the MC might be heading.

SGC anns and figures provided thus far state 13 Tcf in the Sacramento Basin (so Borba will be a percentage of this). California consumes 7 Bcf/day and imports 90% of this.
1 mcf = $4 USD or $6 AUD.
1,000,000 mcf = 1 Bcf.
1,000 Bcf = 1 Tcf.

California gas market =
7 Bcf/day X 1,000,000 X AU $6 = AU $42mil per day

Does anyone know what sort of daily production rate would be an industry average?

If Borba produces and caters for 1 Bcf of the California market = AU $6mil per day

X 33% for XST = $1.98mil per day (gross).

Isn't this crazy for a MC of ~$27mil? After expenses, we could be looking at $1mil per day rolling in. No wonder the MC of current producers are in the $billions.

I assume there would be a huge advantage for SGC and XST with Borba as there is significantly reduced transport costs incurred as the gas is produced where it is being used, hence would take on a large part of the local gas market.