Magellan Energy, Ltd. (MGLG)

[DangermouseBuu]

Perfect Cup and Handle + Revenue Projection

Here's a picture of the cup and handle for MGLG side by side with the textbook definition.

http://yfrog.com/5scuphandlej

The world petroleum industry says that the average amount of natural gas from a well =

10,000 m3 - 50,000 m3 of natural gas per day per well

times price of natural gas / m3 (call it .33)

times the number of wells (24)

= $79.2k - $396k per day production.

= $2.45 million - $12.28 million per month

= $29.4 million - $147 million per year

"The upper paleozoic reserves take up 76.4% of the proven natural gas reserves. The permeability of sandstone gas reservoir is 0.5~2.0 md. Poor in reserves, on average, the gas-bearing area per square kilometer only deposits 1.3 billion m3 of natural gas reserves. The average daily output of a natural gas well is only about 10,000 m3. The lower Paleozoic reserves take up 23.6%. With higher permeability in carbonate gas reservoirs, the average daily output of a well reaches about 50,000 m3. "