The new royalty regime will help:
NPV(10) increases from $427,033 to $1,078,763
IRR goes from 17% to 28%
Gaz Metro will build pipeline connections and could sign flexible gas delivery contracts.
The timeline could be shortened for an approval for a pipeline connection which now takes 9 months to allow gas deliveries in 2009.
Perhaps Canbriam or Junex could hook up their gas wells to Gaz Metro pipelines and leave Forest Oil behind.
I believe Junex will fracture stimulate the St-Augustin vertical well soon.