Numbers...With op costs at $0.03/mcf and 45 mmcf/d of spare pipeline capacity 2 miles away, the value of a discovery at La Creciente becomes quite apparent.
45 mmcf/d x $1.50/mcf (my estimate) x 330 days/year - 6% royalty x $1.15 CAD/US = CAD$24 million/year.
42.4 million F/D shares gives cash flow of about CAD$0.57 per share from La Creciente alone.
I'd assume that two wells (3 max) into La Creciente could fill the pipe. Capex would be pretty low in this scenario given the short tie-in. Just well costs to consider (likely funded by cash flow from the oil production).
What's a fair cash flow multiple? 4x? 5x? 6x?
If La Creciente tests gas at good rates (nearby wells test at ~25+ mmcf/day) the value of La Creciente will be very hard to ignore.
Here's hoping.