what 40mmscf/d means to me

A flow rate of 40mmscf/d provides substaintial early cash flow for key. Considering a sale price of $3mcf/d (mcf = 1000 cubic feet) and a 20% stake in the project gives KEY a cash flow of $24,000 per day and per quarter that's approximately $2.1M. If we consider reserves of only 50bcf this will last approximately 3-4years (assumming flow rate doesn't decrease)... So that's effectively $8M each year from one well!

As the flow rate decreases more wells will be drilled and pressure lift mechanisms will be implemented maintaining a minimum flow somewhere around 20-40mmscf/d - so i don't think this cash flow per year will decrease at all...

For a company worth $18 only, that one well is more than enough reason for an investment...