Oz, AWE are very interested in the Perth Tight Gas and Shale Basin following successes at Senecio, Corybas and Arrowsmith.
They have now established offices in WA having realised they are very well located in what the IEA recognise as one of the nine biggest shale basins in the world.
A successful drill at Drover would give them 4 very saleable prospects over a north-south distance of about 100km. The infrastructure is nearby and the market is well priced.
AWE do not have the financial resources ( and nor do NWE ) to develop such a huge potential so I would bet that a large " Chevron" type Major will move in and take over.
The Golden Age of Gas is upon us. Check out the smog problems in China. They are thirsting for gas. A whole city had to shut down for several days recently.* The population were choking to death. Add on the fact that Japan's 51 nuclear power stations are far from being reopened.
* A Chinese billionaire is now marketing pressurised oxygen cans. You just rip it open and gasp the oxygen. Unbelievable.
The Arrowsmith project has been ticked off by D&M as having a prospective resource of 2.6 TCF. These are big numbers but the best bit is that AWE are also concentrating right across their permit on the HCSS tightgas sandstones.
I invested in NWE for their HCSS Tight Gas. ( which flowed at 777,000 scf/day.) I am hoping a good 3D can pave the way for say a 15 stage multi frac which could deliver fantastic volumes into the Perth market. This is what AWE are hoping as well.
A successful Drover drill would be very good for AWE, plus TTE ( who have a 18.5% share ) plus of course it will enhance this Basins profile in a world desperate for gas.
NWE Price at posting:
1.6¢ Sentiment: Buy Disclosure: Held
