'STX production scenario of 75TG/d, i think it is worth over 50 cents based on cash earnings but production won't start until 2022'
Phase 1 is planned for 25-75TJ. Should be easy to get 75TJ from three wells. 75TJ is roughly 75mmcd per day.
Revenue is easy to calculate. 75TJ a day equals 27,375TJ per year or 27,375,000GJ per year.
At 4.5 dollars per GJ, it gives 123 million revenue for both companies or $62 million each.
If half of it is profit, this gives 31 million profit per company. The average cost is $3 in WA not sure if can assume 2.25 average cost for phase 1. But it will be a low cost producer.
Phase 2 will be 150-200GJ. Which will require at least three more wells. The profits should more than double with doubling production.
WGO Price at posting:
22.0¢ Sentiment: Hold Disclosure: Held
