RE: RE: Presentation - Recoverable GasBigbadoil. Thank you very much for your analysis. I agree with your assumptions.
Let me continue, if we use 0.5 billion dollars gross for the project right now, do you think a larger company might consider buying their assets based on the work to date. I would think they need to drill a few more wells to make this attractive. We must also remember that there are other development areas to be tested that were suggested in the Rose Report, so if any of these were tested and successful, then this would certainly add to PXM's value.
I might also comment that at $3.50 gas, surely we can add some more upside to that into the future since let's face it, gas prices can remain depressed forever.
There also appears to be considerable condensate, do you know how much a barrel of condensate is worth?
And lastly, most assumptions are conservative, so if any of these wells test at higher pressure, then PXM's value will certainly be adjusted upwards.