EMP rough project costs and value
· Current gas price is around $7/GJ but has been as high as $10/GJ (GJ = approx. MMBtu)
· Resource rough calculation around1.8 billion MMBtu = $7 x 1.8 billion = approx. $12.6 billion AUD
· Target 80 million MMscfd over 25year life
o Approx. 80,000 MMBtu per day
· Target Resource Value (over 25 year life)
o $7x 80,000 MMbtu per day x 365 days = $204 million AUD per year
o 25year life = $5.1 billion AUD
· Cost of Project
o Approx. $9m for FEED
o Approx. $25m for well costs without flow testing
o Approx. $500m for pipelines
o Total around $534m + flow testing and contingencies (would expect around $600m roughly)
· Value of Project
o $5.1 billion - $600m = approx. $4.5 billion at current prices
Will be interesting to get some updates from the company and hopefully some NPV figures based on various milestone costs and timeframes.
(20min delay)