RE:Some figures............That's net too because it doesn't cost us a bean to generate that cash. It's US $ 9.61 cash per share over 10 years.
Even if they paid out US $ 5.00 of that cash in dividends they would still have more cash left over than the co. could possibly spend unless they decided to embark on a huge aquisition spree but with 20 additional targets right here why bother. If successful at Royston the whole thing get's even crazier. Sortof hard to comprehend but I do like the idea of a US $ .50 dividend coming every year....that's .64 for us Canadians.
Thanks for posting.
Proselenes wrote:
A good post by MT at ADVFN.
..........Some thoughts - were a full drilling evaluation of the Casca and Chinook discoveries to deliver a combined circa 1Tcf of 2P reserves - then at the following average daily production rates the life of the fields could be:
100 MMcfd = 36 Bcf/yr = equivalent to 28 yrs field life
150 MMcfd = 54 Bcf/yr = equivalent to 18.5 years field life
200 MMcfd = 72 Bcf/yr = equivalent to 14 years field life
250 MMcfd = 90 Bcf/yr = equivalent to 11 years field life
300 MMcfd = 108 Bcf/yr = equivalent to 9.3 years field life
Assuming 5 wells on Cascadura and 3 wells on Chinook at an average production rate over the life on the fields of 35 MMcfd per well:
Cascadura - 5 x 35 MMcfd = 175 MMcfd
Chinook - 3 x 35 MMcfd = 105 MMcfd
A combined average of 280 MMcfd plus 7,500 bopd of liquids with an average field life of circa 10.2 years.
At 80% net to Touchstone this would be 224 MMcfd and 6,000 bopd of liquids .
At a conservative average margin of $1.5 Mcf and $35/bbl - this would generate around 42k boepd at an average daily cash flow of $546k/d - equivalent to $200m/yr or circa $2bn over the life the fields - which could explain why Paul Baay has described the nat gas supply contract being negotiated with the NGC is of a multi $billion value over the life of the proposed agreement.
Carapal Ridge with an estimated 0.5Tcf of reserves commenced production at circa 65 MMcfd and has been in production for 17 years and is currently producing circa 35-40 MMcf/d
AIMHO/DYOR