What does this potentially mean for shareholders?Share Price:...

What does this potentially mean for shareholders?

Share Price: 0.8c Cash: $5.5m Asset value: $16m Market Cap: $23m

Shares on issue: 2.86b

Potential share price value if this first well comes in for FUT in November and December 2009:

Potential Brian Well #1 BCF Payout Table

FUT QUANTITY AND SHARE = 28bcfe (on the re-entry only) @ 38.5% NRI

FUT US $4.70/mcf gas (gas in ground (Henry Hub 19 Oct 2009))

USD50.64m or AUD 2.1cps

Therefore the FUT share price may be 2.1c + cash of 0.2c = AUD 2.3cps




Potential share price value if the field comes in for FUT:

Potential of Tuscaloosa Reservoir

FUT Ownership: 38.5% of 1.26tcf

at USD $4.70 /mcf (gas in ground (Henry Hub 19 Oct 2009))

gives a value of USD $2.61 billion or AUD $0.93 per FUT share




How 38.5% is calculated when FUT owns 50% of the field: FUT are not 50% of the field in true terms as the landowner royalty is 23%. So while FUT own 50% of the field they pay out a 23 % NRI (net rev int) royalty thus making FUT's % stand at 50% of 77% = 38.5%.