shrewd crude report valuation, page-31

yes Perth gas prices are higher now..however think about this way. If we get all this shale gas into production the local gas price is bound to collapse, just as it has in the US.....so dont count on $8 being received. The other thing is the cost to drill the wells. My understanding and I am happy to be corrected is that the wells can cost $10-15m just to drill. So it takes a big chunk out of the optimistic NPV per well that SC has calculated.......I still think the game will be about liquids......