Good stuff, Yatchy. Only taken me a year to get my head round the gas side, all starting to make some sense now.
Whatever the nature of the deal and whoever is involved, is it a good bet the current JV need to press ahead first with this first phase, which I am assuming gets signed off on and announced very soon within existing budgets and financial commitments? (Mcorp will want JV project to be in best position whatever eventuates...)
1) " Buru has identified a relatively modest operational program that has the potential to increase the Contingent Resources by up to 3 TCF in the area of the evaluation ...
...likely to include the further flow testing of the Valhalla North 1 and Asgard 1 wells, and the drilling of an additional well with a horizontal section. "
so is it at this point the deal gets done in order to progress to the significant capex phase as follows: ?
2) "... if this (the 3TCF) was achieved, further work would then focus on the commercialisation pathway...
...Subject to the success of this Contingent Resource program, Buru is of the view that a further pilot program consisting of the drilling of a number of wells from a central pad could lead to the establishment of a local supply project probably using a compressed natural gas (“CNG”) system. "
Or is the above still within the scope of the current JV arrangements and the big deal only gets done before the project gets fully scaled up as follows:
3) "... This project would then allow the conversion of Contingent Resources to Reserves and the scaling up of the project....
A full scale project delivering gas into the Pilbara and the Southwest would be able to supply a significant proportion of WA’s future domestic gas needs. Planning for the forward program is underway now that the data obtained from the program has provided confidence of the scale and potential of the resource. "
Thoughts?
BRU Price at posting:
20.5¢ Sentiment: Buy Disclosure: Held
