Ann: Metgasco (MEL) appoints Mr Greg Short to Boa, page-12

re: Ann: Metgasco (MEL) appoints Mr Greg Shor... Good post CSGGuy enjoyed the read, you deserve all your TUs but you over emphasize the blame I attribute to Govt. I never said it was the "prime" reason as you say below. Let's face it boards meet once a month and get reports from mgt etc etc and then try to set some direction. Mgt get out there and execute. It is true that they did not move quickly enough to development. I thought they may have been nimble enough to get their Richmond dairy gas line in quickly before the regulatory environment turned hostile but alas they were not and the window has shut. Also, regardless of whether you call them trucked in protesters or locals, community opposition has grown massively in the last 2-3 years. They have perhaps handled that badly but also fair to say the anti CSG movement has been very well organised and effective.

I don't think you can say MEL's wells performed anywhere near as well as other CSG operators. If they had they would have been taken out years ago. Any reasonable flows they published were mostly short lived peaks from pockets of gas which quickly settled down to less than 200mmscfd. The reason more money was raised to drill more laterals is that they have to keep trying new techniques & drilling different etc otherwise they may as well sell up and return s/holders cash, that's the nature of exploring/evaluation/appraisal. What else should they have done ?

The mgt departures do look bad and 3 of them have a common root cause, nuff said there. As for the power stations, just put them out of your head, monumental waste of money and window dressing. The early operators in Qld were only able to get theirs up because of far better well economics and Qld Govt financial assistance.

Sure MEL board and mgt have made some mistakes but when all is said and done the CSG assets just aren't that good. Plenty of gas but very low perm and tricky geology. It will be unlocked one day. The conventional story however is yet to be written. cheers