8BCF for Key isn't too bad. Assuming sales of $3.5 per mcf, or...

8BCF for Key isn't too bad.

Assuming sales of $3.5 per mcf, or $3,500 per mmcf, 8 mmcfd per day flow going to KEY (20% of the original 40mmcfd flow), a 50% JV take (with the rest going to TZ gov), revenue per day for KEY is $14k.

At a flow rate of 40mmcfd per day this means 14.6BCF will flow per annum, or about 3 years to drain the 40BCF.

NPV of revenue for KEY over this time should be over $10M.

Given the UK assets + cash together pretty much account for the current market cap, I actually see this result as a very good one - provided the estimate is correct and the costs of getting the gas to market are reasonable. Given the delays already who knows what the reality is.

At least the UK assets mean the downside surely has to be minimal.