Nice post Biggle.As I understand it they are talking about the...

Nice post Biggle.

As I understand it they are talking about the total resource from the prospect, and about another 4 wells needed to realise this.

However this is part of a much larger project (they call the "area of mutual interest"). This could add much more value now that we know "there is gas in them there hills".

Lots more projects to keep results flowing. This can be a good or bad thing - a bad result even in a well worth little to EMR can quickly drop the SP 30% (though a nice time to pick up for the bounce).

Note that the really big play for EMR is the Eve Rose project along the Pinnacles fault line (hosts stokes bay). This is potentially much more gas there that is 100% Emerald's - though if they don't have success elsewhere they mey need to partially farm it out. Each of several areas are potentially 500Bcf - 1Tcf reservoirs. Success on just one will increase the MC of EMR by about 10% of the in-situ gas (assuming 100% of a 500Bcf reserve or 50% of 1 Tcf, worth about $1 billion in resource now and up to $3billion with forecast gas prices increasing dramatically over the next few years).

As I see it - the US operations are effectively a "gas farming operation" - many wells with good success rate for a good steady income justifying the current MC. The WA projects are the ones that will potentially push the SP up to several dollars.

My sort of investment - downside = limited, upside = blue sky!