Dex, I would hazard a stab and say that we should still work with the 80BCF or so the company has already indicated.
The high-side in the equation is in fact, that it confirms gas bearing formations in the clarence-moreton; for which MEL has several additional targets identified.
As for valuations guys, unless you know the margins, it is almost useless trying to value them the way you are. In general people have been using $0.5m to $1m per BCF/PJ to provide indicative valuations. Some of them are far more than this.
The one thing you could more reliably calculate is the likely revenue from the resource as you have a gas price..but alas you wont know what the recovery rates are until you carry out production tests.
We do know that margins are likely to be on the higher side as they are close to market. We also know that annual revenues are likley to get higher as they have indicated increased scope for gas power gen.
Just some things to think about.
Cheers,
SF
MEL Price at posting:
68.0¢ Sentiment: ST Buy Disclosure: Held
