Frieda this is for you. Bugger the underpeforming shares sell the house, sell the childres (OK that was a joke - just use them for security)
1. 20mmcf/d at current prices of $10/mcf gives a revenue stream $US 200k per day which is US$73m annual revenue. Al this from a handful of wells. How much from “several hundred drilling locations”? A ship load, that’s how much.
2. Recent transactions have averaged $US2.00 - $2.40/mcf for 2P reserves, but these are OLD numbers at OLD gas prices. How about US$2.50 – $3.00 today. I’d like to see that.
3. Do the numbers 2P reserves 750Bcft (my conservative “multiple”) at a conservative US$2.50 mcft divided by 298.9 shares on issue equals $US$6.27
3P estimated 1500Bcft (that’s a Guess) at US$0.25 mcft equals another US$1.25
Value gas in ground is US$7.52 and that is AUD$8.00
4. Risk (conservative) 75% - BOTTOM LINE AUD$6.00
Worst case for you pessimists is 500Bcft at US$2 and 500Bcft 3P. Value is then (same risk) AUD$3.62
How does these numbers grab your BS’s
MAE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
