RE: RE: RE: RE: 20,000 (thousand cubic feet ) perI said 5 times profit, not 5 times sales which is completely different.
Profit is after expenses, taxes, royalty, amortization..........
usually in oil and gas companies profit are around 10% of sales with oil at 100$
so make again ur computation based on 5 times profit and take the assumption that profit is 10% of the sale (which should be fair for TAG coz oil is very profitable but gas not that much)
and also you have to tae into account depletion. A bakken well which is stimulated is divided by 5 times after a year. So it deplete fast. You have to take into account that.