Upcoming production from Idaho!
Upcoming production Q1 2011:
As per today Paramax have the capacity to deliver 12mmcf/d to the williams pipeline.
Securing this contract with william is one of the things Paramax is working with as i type so I guess we will hear news about this soon. There is 100mmcf/d capacity left in the williams pipeline so this is by far enough for us.
If we look at the prices for natural gas, the prognosis for 2011 says 4.5$/Mcf
The estimated (by Paramax) Cycle cost is 1.5$/Mcf.
Then lets calculate:
1Mmcf = 1000 mcf
4.5-1.5 = 3 (pure profit)
3x12 000*365=13 140 000$
So we will see a profif of over 13million$/year from Idaho, no bad.
And our market cap is just over 21million...
I would reccomend Paramax to all my friends at this SP level