RE: RE: RE: ouchThanks for that brnt999 . Schaeffer does make sense but the oil and liquids still amount to about 1800 bbls/d, doubling their current production. If their estimated exit 2011 cash flow is 89 cents before this well, they are still trading at less than 5 times cash flow without any contribution from this well. Assuming $90 oil and $10.80 gas, when the well is fully producing and monetize, they would be somewhere around .89 +2.50 = $3.40 cash flow, would they not? The oil component alone would put them trading today at about 1.5 times cash flow if they could monetize it.
The expected gas line is to be completed in 2014 I think? Maybe they won't be able to produce any of the upper Tannezuft zones at all until the new gas line is in place? I don't know enough about the technology.
Still cheap at these prices for those who are patient. Certainly less risk today than last week in my mind.