Ok still having a go at getting some revenue calcs.Here is what...

Ok still having a go at getting some revenue calcs.

Here is what we know.

10 wells will produce MORE than 1000mcf

This site http://www.usourceonline.com/energycalc.html
says 1000 mcf = 1030 MMBTU

Current NYMEX gas price is $6.81 per MMBTU
http://www.wtrg.com/daily/gasprice.html

In April IMP states that this fileds generates a premium price of around 0.80c ontop of the normal quoted NYMEX price due to its proximity to market (I assume thats the reason) so lets base it on $7.60 for ease.

10 wells = 1030 MMBTU per day = $7828 per day or around $2.86 Million per year. IMP get 60.93% NET revenue interest, presumable after operating expenses because they are not operating the field American Natural Resources are so thats $1.74 million per year.

Imp say a further 55 identified sites, according to the releases we can expect 95% to be successful in this area so lets say another 50 wells operating still to come totally 65 wells

So $1.74 million per year NET revenue off 10 wells times 6.5 = $11.31 million per year off 65 wells

Each well cost around $250,000 which IMP pays 75% = $187,500 x 65 wells = $12.2 million.

Entire 65 well program is break even in about 13 months then its pretty much a clear $11.3 million profit per year.

The sector operates generally on a PE of 12 giving IMP a potential cap of $135 million or around 10 cents per share.

On top of this the 4.9% holding of BMX adds another 1 cent per share at current prices, but rising fast of late (go BMX go)

This suggests a valuation of 11 cents per share.

I have not factored in the cost of capital, but then again I have not factored in the "MORE than 1000MCF from the 10 wells - how much more could alter this equation very quickly suggesting a valuation of 15c to 20c. perhaps more as some have suggested the last wells were 160MCF per well.

Any commetns cause I'm a mug punter when it comes to Gas and Oil

Dazzler