$6 million market cap - testing will take place within a few weeks of the 2750 ft to 2800 ft interval, which the company says has excellant reservoir properties. A drill stem test in Jan 2006 conducted in the open hole over this cored interval exhibited a strong pressure build-up to almost 1000psi before the tool plugged and the test aborted.
Lack of any buying support for this company, does not give would be investors much confidenece, however the company says this interval flowed 5 MM cfpd in a DST in 1960-but thats what they said about a deeper interval which failed to flow in that January drill.
Certainly investors have been hurt with this stock, so far.
Google searches clearly confirm that Philippines officals strongly support gas exploration and subsequent development for electricty supply. (obviously so)
Lets just put previous disappointments aside and say they do discover gas, with sustained flow of 5 MM cfpd. Revenues at a modest A$3 per MM cfpd whould see annual revenues for GGX of $5.5 miilion PA - almost the same as todays market cap.
No tax or royalties are paid until the full developments costs are recovered. I think GGX are putting a figure of $10 million having been invested in the project so far. Therefore at say $4 million PA nett profits (but nil tax) - up to $10 million, you would not even try to put them on a PE. (rather the shareprice would rise very rapidly back to all time highs).
At a shareprice then of say 30 cents, (following the 5 MM cfpd discovery) investors would look for advice from the company as to how they would undertake funding of what they claim to be an additional 11 future drill leads.h
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