Oh I think that this report fails to take in the importance of Shale gas and Shale oil to individual national economies and energy security, also in the case of non producer countries the affects importing oil has on their balance of payments. This is not, therefore, entirely a commercial enterprise, it has political overtones too. I don't think that countries which have good Shale prospects will allow this industry to fail
I think that goes without saying! Does one need to establish a 'task force' to make such obvious statements? In my own professional experience, allowing local representatives onsite has always been the case, and a matter of simple politeness, if nothing else, although obviously it can't be done on a 'free to come and go as you please' basis, when delicate or potentially hazardous operations are underway. And this is not limited to shale-gas, but just about any drilling operation. There should be somebody onsite, or maybe a designated 'local relations person' in the base office tasked with helping such visits, and who hopefully has met with local representatives even bofore operations have commenced.
But also, one has to differentiate between 'local representatives' and potential troublemakers, industrial spies from rival companies, or possible terrorists .
But naturally, during a frac job, for instance, if you're pumping 120 bbl per minute at 13,000 psi, anyone not essential to the job should not be allowed close to it. An oilfield wellsite is not a children's playground. Take the kids down a coalmine, sure, why not? But you don't take them to the mining-face when a new seam is being broken into. Pure common sense, and it doesn't need some 'task force chairman' with a pristine unscratched hardhat and a yellow jacket (and probably a second-class degree in Sociolagy from some dodgy university) to tell us that!
I wonder how much CNN paid him for his 'fifteen minutes of fame'?
Value of sales and profit are two different things. If the total profit (= total value) will be 10% of the sales amount, that would already be great. This means, that share value one day may be 10 or 20 times higher than today, but I doubt it will ever be hundreds of times higher than it is now. However, I would ''love'' if you are right.
Ps. The SP will never get anywhere near that high because IGas will start paying out very nice dividends once a regular cash stream develops. But for most of us (well, certainly fo me) that is even better.
Don't forget IGas will likely obtain more acreage from the 14th license round so the calculations are theoretically underestimates.
Just continuing to play with the numbers, if IGas were to reach £300 per share in 30 years that would mean an average rise in SP of £10 a year. Very nice. However, I hasten to add this won't be happening tommorow.
The truth is something along the way will likely change (e.g. increased taxes or a major balls up by the company at some stage - remember Warren Buffet's quote, "I try to buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will") to bring this figure down. Hell, I just need the shares to be a little over £8 to make me a millionaire and I haven't finished topping up yet.
Valuations of £276 & £340 / share would give IGas a market cap of approx £80bn - £100bn. Is this realistic ? I can see 20% recovery rates (10% would be still be v good) but can IGas really compare against BP' s market cap ? I'm a long time holder bought initially @128p and recently filled up @ 28p. Used to the pain by now but these numbers are truly off the scale. Anyone else have any ideas in this ?
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