In case some of you missed it on the weekend postings this is a rough estimate of the cashflows that will come from gas prouction of just the first 2 wells now ready for connection. If in doubt re measurements of CMF/d etc read their 25 July Announcement.
Flow per day: 2900 cmf/d
Wholesale Value of 1 x cmf/d = US$?? say $8 but maybe up to $14+?
2900 x US$8 = 23,200 per day
NEO share AFTER Royalty say 30% = US$6960
Income per annum 2 wells: 6960 x 365 = US$2,540,400
Conversion to Ausralian Dollars @.76 = A$3,342,632
Thats not bad! Given the strong likelihood of the flow rate reaching their INITIAL target of 6000 cmf/d wen the next 2 wells connect you can Double that calculation again. Using the cash to drill more wells producers a multiplier effect.
NEO
nuenco nl
