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

To: Check who wrote (514)12/7/1998 12:47:00 AM
From: JL  Read Replies (2) | Respond to of 15703
 
Be conservative, Check.

Using Kerm's spot pricing and assuming $1.60 for 1 Mcf then 1MMcf would be $1,600. At that price then 3 Tcf would equal that $1,600 with six more zeros (to get into the trillions) and multiplied by 3. That comes to (abacus sounds) $4.8 Billion.

That's a fair chunk of change but is subject to fluctuations because of the unseasonably warm winter right now. In colder times it could be as high as $6.4 Billion.

Use that in your formulas.

Besides... Forget about BOE and all that. Spot pricing of the 1Mcf is all that matters when your dealing with gas. BOE comes into play when it's a mixed bag of assets. This appears to be mostly all gas.

JL



To: Check who wrote (514)12/7/1998 5:27:00 AM
From: Bearcatbob  Read Replies (1) | Respond to of 15703
 
Check, My memory of long ago and far away is that a barre of crude is 6 million BTUs and a MCF is a million BTUs at 1000 BTUS per CF. Therefore 6MCF is the thermal exquivalent of a barrel of oil. Also, at 2.00 dollar per mcf 6 mcf is worth 12 dollar.

I think that 10MCF is an outdated BOE in todays economic environment.

Bob


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