rudimentary estimate in share value
Lets say an average gas price of $7.82 (NYMEX Futures Natural Gas - Mar/07 $7.82)
The value of reserves assertively estimated by Scotia’s P50 probability is (54.9 TCF)
Multiple wells must of course prove this (which FO is currently doing) number because you cannot place a single reserve value into a flow rate
In this supposition I’ll round it up for simplicity
($7.82/1000) (55TCF) = 0.00782 (55 000, 000, 0000) =
A company worth + $ 430, 1000000.00 (430 billion dollar company)
1000 (constant I use to convert standard cubic feet, makes is easier to calc.)
A rudimentary estimate in share value would place the company value divided by outstanding shares
459,430,763 (as per Stockhouse Feb 12, 07)
= $9.36/share.
Most companies trade at more than two times their cash flow,