1 barrel of oil has the energy equivalent of about 6,000 standard cubic feet (scf) of natural gas. Therefore we can express quantities of gas as "barrel of oil equivalent" or 'boe'
1 trillion cubic feet (1 tcf) of natural gas = 1 million million scf of natural gas i.e. (10 raised to the power 12) cu ft of natural gas
You can show that 1 tcf of gas = 167 million boe and therefore 15 tcf = 2.5 billion boe (to be sold as liquefied natural gas (LNG) in the case of ZEUS
let’s be very conservative and say a barrel of crude oil is currently worth US$50
Therefore, over the life of ZEUS, if all this LNG were produced and sold at the prevailing energy value of crude oil, then, by inspection, the total paid by the customer would be expected to be in the order of (2.5 billion boe) x (US$50/boe) = US$125 billion dollars
Note this is gross expected sales value only
And MEO has just 35%
But I think you get the gist
For mine a good strike at Zeus with 10 plus tcf & SP should be back over $1 - but who knows in this market
MEO Price at posting:
16.0¢ Sentiment: LT Buy Disclosure: Held