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Re: king yukon post# 2866

Sunday, 04/10/2011 3:39:10 AM

Sunday, April 10, 2011 3:39:10 AM

Post# of 6903
Shouldn't there be a discount of probable resource to recoverable NG, say 50%, also a discount of say 75% to gas price. They have no infrastructure of producing wells so the buyer would just be buying gas in the ground. So 7T cubic feet at 25% mrkt price for NG; say $1/1000 cubic ft for gas in the ground would be 7 billion dollars divided by 100Million shares = $70 per share.

Have subsequently read geopressures post that 30% is more probable then 50% so reducing the above by 20% = 2.1T cubic feet

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