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Gold/Mining/Energy : KOB.TO - East Lost Hills & GSJB joint venture -- Ignore unavailable to you. Want to Upgrade?


To: F9driver who wrote (6022)10/24/1999 8:04:00 PM
From: Mr. Oil  Respond to of 15703
 
Thanks for your help there F9driver. I thought I stumped everybody with a couple of very elimentry questions. I am glad you didn't let it go and I appreciate the feed back. Now I will study it and try to make sense of it. ggg

Ray



To: F9driver who wrote (6022)10/24/1999 8:09:00 PM
From: Bearcatbob  Read Replies (1) | Respond to of 15703
 
F9 Driver,

Check my math against yours.

1 mmcf = 1 million btus = $3.00 in todays market.

I value gas in the ground for acquisition at $.50 per million BTU.

So, 1E9 = 1 TCF. One TCF = 1,000 million btu or $500,000,000 per tcf.

Then the share caluculation proceeds. The key for these small companies will be the ability to fund the development $ required and then to reinvest the cash flow.

The whole vauluation thing becomes mind boggling.

Bob