Think of it this way. Let's say average production
Post# of 39368
Think of it this way. Let's say average production will be 750,00 Mcf to split the difference between high and low. Then for arguments sake say that 2nd half of 2013 it hits 6 bucks so the average price for the year is about 5 bucks. That's still 3,750 bucks a day. If it produces 330 days out of the year thats still 1.2 million. Then you figure it has a life span of at least 5 years and that nat gas prices continue to trend higher.
This is actually a pretty good deal. I'll take 1.2 million a year in revenue from a commodity that should be more expensive in the years to come.