italio forward natgas prices

the forward curve on the Italian gas prices would make a US natgas executive cry

In the US you get around $5mcf on the forward curve, the DEC 11 price for PVE in Italy is US$16mcf

OPEX is about $1MCF for PVE , in the US usually $3 to $4mcf

so if Castello brings home the porcini, they will be producing DEC 11 at annualised 2BCF with a forward price at $16mcf

thats an annualised US$30million operating cash flow per annum to fund development etc

EV is $30million

So I call for a buck on this ticker in 12 months on the basis Castello delivers and the forward curve stays intact