100/70 = 1.4285
1.4285 X .20 = 0.2857
Lease blocks have appreciated a few percent per year.
Accrued production should offset expenses. It seems unlikely mosh would get nothing on all counts. worst case seems less likely than getting _something_ even if it is just throwing out some overcharges.
That should be good for a few cents.
Now we consider that nat gas is main commodity involved, but, that too is going up. Plus there is the "white oil" condensate that fetches a premium to regular crude...
Anyway, "thirtyish" seems more like it would be in the ball park, even somewhat pessimistically speaking.
Add a even a little pinch of optimism, and that's one way of explaining where we are right now.
Actually oil closed at 101.68, which would be .2905 but since 70 is a ballpark figure, should go round numbers all around.
hmm. with 120 oil ( & presumably proportionately higher ng) that gives us 0.342 <g>
