Jocam, taking your 42mcf a day production figure as read (and assuming the 2 developments wells go to plan), what would PSA daily cashflow then be worth if we had a 'freeze your balls off' winter in USA.
At $7 gas price, = A$371K a day At $8 = A$423K At $9 = A$476K At $10=A$530K
Now I am not saying this prices would last for ever, but say we had 6-8 weeks of elevated prices, well that would be windfall profits for PSA. And those windfall profits would really swell the coffers, past a point where cash balances would be in excess of what they need.
And that may equal dividend time (at which point the company would be taken more seriously).
There is a load of upside potential there. I am not saying it is certain to happen, but 50% increase would be possible with higher gas prices.
PSA Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
