A mate, who is smarter than me, explained it like this;
"10 mmscf = 10 million cubic feet = 10,000 million BTU (approx - cubic feet is volume, BTU is energy measure)
depends where the gas is selling but in the US it's about $4 / million BTU , so that is $40,000/day"
As TNP can get about double the US price in China, which would mean about $30m rev p.a from 20 producing wells at a minimum for all the shares to vest.
So at the current MC of $11m, it looks like a pretty good prospect for a major rerate if they can get decent gas flows. As it isn't an exploration well, but an evaluation one, the odds are stacked our way.
TNP Price at posting:
2.8¢ Sentiment: Buy Disclosure: Held
