The company and guys like Peter Strachan had the gas value at average $5aud at well. So how is the $1aud figure arrived at for in ground?
I know it's academic however there may still be some commercial gas flow.
The hype imo was simply that the company and other reports suggested the multiple TCF potential. The numbers extrapolated on 1tcf recoverable (using the companies MD's figure of $5) was an at well per share figure of over $4 to SGC. (allowing for the 20% royalty and 66% share)
150bcf was around $0.65.
All these drills whether for oil or gas are highly lucrative although success rates are very low. The prize vs the risk is why we play in the micro caps. Losses along the way are a part of the journey. If punters want more certainty then they look for dividend paying stocks.
I am always disappointed when results don't fall the way I hope. However I long ago learnt that it is my money and I alone accept the risk management. I will give this another 4 weeks before making a further decision.
It's the losses that make success that much sweeter.
SGC Price at posting:
3.4¢ Sentiment: None Disclosure: Held
