Magellan Energy, Ltd. (MGLG)

[lookoverthere0]

Wouldn't there be some caniballism from the new wells?

This is a consumer product. They can't just add more wells and sell an equal amount of gas per well. People would have to consume more, right? I wonder how much more gas are they really going to be selling. I'm not bagging on this acquisition. It certainly makes them a stronger company, but I don't think this is as cut and dried as some people have implied.

Now, someone mentioned that reserves were more important to the stock price than the production so that brings up an interesting idea.

As for the production, has anyone looked to see if they can find a graph on gas consumption by month within the U.S?

It's going to vary month-to-month, but predictably so. I think we could get a more accurate valuation if we take that into account... once we get the production estimates.