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Sandstorm Metals & Energy Ltd STTYF



GREY:STTYF - Post by User

Post by Kewl2on Mar 13, 2012 7:48pm
333 Views
Post# 19665504

Article - Above Average Odds

Article - Above Average Odds

NOTE: I found this to be an exceptionally detailed analysis of an SND stream -- I needed to read it twice and likely should go over it again ......... you may want to pick a comfortable chair to sink into before reading this!!

This post covers just one of the multiple SND streams that have been consumated -- this one is about Thunderbird Energy's Gordon Creek project.

Sandstorm has acquired 35% of all natural gas produced from Gordon Creek for an upfront payment of US$25 million plus ongoing per unit payments of US$1.00 per mcf of gas delivered plus 20% of the market price received that is above $4.00 per mcf delivered.

Sandstorm Metals & Energy (CVE: SND): A Look Under the Hood Part 1

https://www.aboveaverageodds.com/2012/02/27/sandstorm-metals-energy-cve-snd-a-look-under-the-hood-part-1/

for example - one paragraph ->

"I mean, the first time I realized that not only were the initial run-rate production estimates relatively easily achievable, but that there was a reasonably high probability that normalized production run-rates at maturity could be something like ~2-3x higher than my initial expectations, I had a hard time believing it (maybe this Watson guy is the insightful contrarian home run hitter that his track record indicated after all). So a quick “boomshakala” and a few fist pumps later (kidding) I rechecked my work and the underlying premises of my assumptions, and again, found that a multifold increase was indeed a reasonably achievable, if not probable goal over a longer time frame (3+ years). Remember, this isn’t some pie in the sky “wildcatting” best-case scenario that I’m talking about, its basic blocking and tackling oil & gas exploitation – i.e. no one is reinventing the wheel here. So we know the gas is there in a BIG way (as is the requisite infrastructure), the geology is consistent and the optimal extraction methods well known, and last but not least, the planned acquisition of additional acreage has for the most part gone-off without a hitch."

I look forward to this authors next analysis of another SND stream!!

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