ValuationTo value QEC take the netback after all operating costs . Don't talk about revenues per well and don't use 10,000 wells.
The market will only look out a couple of years. Apply a reasonable cash flow multiple to your cash flow per share two years out. That is one approach. Another would be o derive an asset value based on reserves. This is too early to do.
QEC could not afford 10,000 wells and they have already issued enough equity which is dilutive. Hopefully they will drill just enough wells to provide a netback that is 2 to three times their finding and development costs and let the recycling ratio work for them. This is the main game in the energy sector. Then they won't need as much in the way of dilutive equity issues. My guess is that we will hear at some point from TLM about a drilling program that will probably be over $100 mln in order to have an impact. (They plan to spend $1 billion on shale E & P next year no doubt a small portion should be directed to this play) There will be good wells and some bad wells. Not all at 6 mmcf/d either. TLM will pull QEC along and this still appears to be an important exploration play for TLM. This is the most important point. TLM has a very talented exploration team cutting edge and experienced. A good partner for QEC.