If they can produce 30mcf a day for 1 qtr of 90 days, less 10 days for down time, assume 80 days per qtr.
If in the next qtr (ie ending 31 March) the gas price averages (say) $7.00 net (including taking into account their hedging prices as well) which is quite feasible, well then the qrtly income would be as follows:
30,000 x $7 x 80 days / 0.75 exch rate = A$22M reve per qtr or US$16.8M
Now have a look at the PSA qrtly figures - the last qtr did US$8.1M, so there is a doubling of income coming. And this assumes that the gas price does not go potty through winter if a prolonged cold snap came.
I am quite comfy holding mine, roll on cold weather.
PSA Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
