from today s announcement ...

Two points from today's announcement ...


• In the Folschviller St1 and Diebling St1 stratigraphic wells, coal thicknesses were 25% to 80% higher than that used in the original GIP calculations;


• The overall gas content values were 15% to 25% higher than those used in making the original GIP calculation.


Well say on average that seams are 50% thicker and on average the gas contents are 20% higher, that is 1.5 x 1.2 = 1.8 = 80% increase in initial GiP.


As initial GiP within the Saint Avold and Alsting area covering just 5% of the Lorraine Permit is 1056PJ (from recent presentation) it could now be about 1900PJ if the GiP increase is about 80%. Management have stated many times that about half GiP, or 950PJ, is expected to be recoverable reserves.


From the April Gazonor announcement, operating PROFIT on CMM sales was equivalent to about A$5.4mill/PJ which would be A$5,130mill or A$5.13bill for 950PJ of Lorraine CBM if the costs were similar to CMM ... so assuming higher CBM costs, surely the profit could be at least A$3bill which is $12/share for the current 250,000,000 shares/notes on issue.


I'd be happy to be overestimating and to receive just A$6/share rofl.



Am I dreaming?

Dex