The mapped potential reserves of the the Cameron fields is 25 billion cubic feet. PSA has an attributable 15 billion feet or 60% of the reserves. PSA is pumping 18 million cubic feet a day. Over a one year period this would equate to about 6.5 billion cubic feet.
Now allow a potential conversion of reserves to recoverable to be 40% - around 6 billion cubic feet. This is one years supply if the current rate is maintained.
As well the current gas rate $US5.50/ thousand scf is driven by an extremely cold winter so these rates should hold for another two months. The typical rate will then drop to around $3.50/ thousand scf. This will give an average around $US4.00/ thousand for the short life of the Cameron fields.
Allowing a recovery of $US3.50 / thousand scf after operating costs the field will yield around 6,000,000 units @ $US3.50 or $US21 million - $A35 million.
That is if the field yields this much gas and there are no state or federal taxes on the revenue. Allowing for this risk and unknowns around say around 25 cents a share.
Even PSA have indicated that these fields will yield a useful cashflow to allow PSA to concentrate on larger projects.
The Cameron project including the field size was in the share price @ 25- 27 cents . The increase in share price based on winter gas prices is interesting.
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