WHOA re-doing this the clarification announcement on 16 June...

WHOA re-doing this the clarification announcement on 16 June clearly says 950 MCF per well per day so

Here is what we know.

This site http://www.usourceonline.com/energycalc.html
says 950 mcf = 978 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.

1 wells = 978 MMBTU per day = $7432 per day or around $2.71 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 $1.65 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 $1.65 million per year NET revenue x 65 wells = $107.25 million US less 30% for tax = $75 US million per year or about $98 million Aussie

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

The whole project pays for itself in a matter of months and in year 2 thats almost all profit other than IMP corpoprate costs such as management salaries and admin

ASX average for the sector is 12 so lest assume they can trade at a PE of 8 to 10 then for future years giving IMP a potential cap of $800 odd million or around 50 to 65 cents per share.

Lets assume there are still hidden costs etc but you can imagine a 40 to 50c future share price in a few years time if these numbers hold

Dazzler