Replies to post #1789 on CSMG Technologies, Inc (fka CTGI)

[dsp]

thanks airdale, trying to value this thing right now since it doesnt have much in the way of revenue. this is a big contract, with more on the way, will be watching this closely waiting for an entry point.
dsp

[sojourner]

AD: See my prior post linked below. Nat gas sells @ $7.54 Mcf (MMBtu) at NY Hub. CSMG has previously said it will net 40% from sales of LFG.
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From today's 8-K filing: "We executed a landfill gas sales agreement with E.I. duPont de Nemours and Co. Inc. ("Dupont") and Shoreline Gas, Inc. on February 15, 2006. Under that agreement Dupont will purchase gas produced by the Chastang landfill for a period of ten years through our separator complex. Dupont will purchase up to 80% of its annual requirements for gas at its Mobile, Alabama plant, to a maximum of 500,000 MM BTUs per year. The gas must meet certain specifications that require our removal of certain impurities from the landfill gas."


http://biz.yahoo.com/e/060221/ctum.ob8-k.html

Legend:
M = mille = 1000
MM = 1,000,000 (1000 x 1000)
BTU = British Thermal Unit
1 BTU = energy needed to raise temp of 1 lb. H2O by 1 degree F @ sea level
Nat gas: 1 cubic foot = 1 cf = ~1000 BTU
1 Mcf = 1000 cf
Price of nat gas = ~$8/Mcf

500,000 MM BTU = 500,000 Mcf per year = $4,000,000 per year @ $8/Mcf

If CSMG receives 40%, then $1,600,000 per year redounds to company for the Chastang installation.

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