The last Independent reserves evaluation was as of
June 30, 2020 so if we follow the same time line for 2021 our new evaluation should include Cascadura ST1/ Deep and Chinook and maybe even Royston but that may be wishful thinking.
If they give us 3 TCF recoverable for just the 2 C's that should work out to roughly
US $ 5,000,000,000 Net cash to TXP over the life of those two zones and if it takes 20 years to empty those that's US $ 250,000,000 per year.
So how will analysts value that ?
There seems to be a rule of thumb that suggests US $ 1 Billion per 1 TCF but that seems a bit high.
Then there's a multiple of future cash flow so at 4 times that's US $ 1 Billion or C $ 1.27 Billion
or about $ 6.00 per share which seems a bit low.
Whatever it is it's got to be much much higher than our current share price and June isn't that far off for a double or triple from here.
And then there's Royston and Steelhead and and and