RE: Today's price is tempting me,I think the gas price is not a big problem. Probably around $5-$6 per mcf according to feec's presentation.
The coal maybe like that of Raton basin's. Per PXD's data, the average well reserves is 0.8 bcf, well cost is $0.45 million, IRR is 25% @ $5.5/mcf gas. PXD's NRI is 87.5%.
The company's recent PR said it's like Australia's Fairview Field (TPY used to be there and was aquired by Santos). If that's proved to be right, the reserve and production should much better.
FEEC's NRI is 95% (3.5% ORRI to COP), no income tax in the first two profitable years. The operating cost should be lower in China.
The only big question is the well cost. PCE uses an Australian drilling company and said the cost is very low. So probably FEEC can hire that Australian company, too.