RE: SUNDAY ROAST...............24 Apr 2023 08:02
Hi Jimmy, My take on it is PG is saying there would need to be (lots) more wells drilled to prove up the big numbers with associated cost (and dilution) and the bigger the "prize" the lower the per BCF price we'd get as it would only be the state that could afford to buy it. So in the the short term he saying find a 'zone' that proves up 40BCF and he specifically says "say 40 BCF" (@~20mins) so it's an example, this could realise ~$200M, if that zone came in higher or lower obviously $200M goes up or down.
What is not happening is that all the licence is being given up for $200M, it's find and prove up a zone that can be ring fenced and gift wrapped for $200M if it comes in at 40BCF (could be higher could be lower) but as a previous poster has said looks like a figure around $200M has been discussed with the local buyers.
Very exciting times ahead $200M incoming and that will fund the trifecta and with a little bit back as an SD in the coming months is my expectations.