10 mmscf/day, page-9

Alecfra,

'Natural gas goes for about $6/thousand cubic feet. '

I'm not sure those numbers are correct?

the company has given the following guidance re pricing!

"The CJV has the objective of degassing the coal mining leases held by LongMay and has a life of 45 years.
Estimates provided by CFT indicate that the greater CJV area has multi-Tcf potential.
Given the initial estimates of Gas in Place, providing the upcoming drilling campaign is successful in establishing commercial flow rates and gas quality, there is potential for meaningful scale gas production in the near term.
There is understood to be an immediate market for any gas that may be produced at a price, of around A$7.00 to A$8.00/mmscf.
Drilling each well is expected to take around 15-20 days to drill and test. The drilling pad and well cellar for the first well is already been prepared.
Each of the two upcoming evaluation wells is expected to cost around A$600,000."

So the company suggests $7 to $8/mmscf........ mmscf = 1million standard cubic feet

"Gas volumes are usually measured in multiples of cubic feet (ft3) or cubic meters (m3). Gas reserves are expressed in billion cubic feet (bcf) (109), or trillion cubic feet (tcf) (10x12), or, in the case of countries using the metric system, billion cubic meters (bcm). Gas volume produced or consumed is often expressed in million cubic feet (MMcf), (10x6), and Mcf (thousand cubic feet). Gas volume can also be expressed in million cubic feet per day (MMcfd), sometimes written as MMscfd to denote standard conditions, and its metric counterpart, billion cubic meters per day (bcmd). (M is commonly used to designate 1,000, which is based on the Roman numeral system. Thus MM denotes 1,000 x 1,000, or 1 million (10x6). In the metric system, k also refers to 1,000. The energy industry uses both M and k. Some companies use the lower case m to denote 1,000; thus mmcfd would be equal to MMcfd."

With a multi Tcf potential target this project has the potential to be a company maker over the log term!