By my calculations, assuming a modest gas price of $3 per unit, the gas discovery announced by EPR on Friday should bring in approx. $27k per day or $10m per year, with the condensate offering the potential for a bit of cream. Of course production flow rates are likely to be lower than the 9m mcf per day announced, but these could potentially be off-set with further production wells at low cost.
All in all, it's not a company-maker, but it's very handy, near-term cash-flow for a company with a market cap of $39m. The proximity to gas infrastructure is also a significant plus for the project. The prospect that will really get punters salivating, of course, is the JV with BPT to drill the elephant targets offshore in the Otway Basin.
Long-suffering holders will no doubt be delighted with this success after so many years of heart break.
Good luck, all. I hold. DYOR.
Gupper
EPR Price at posting:
6.8¢ Sentiment: LT Buy Disclosure: Held
