Latent Petroleum and Alcoa of Australia are working as a joint venture with the field development but will manage the sale of the shares of the gas separately. This means over one third of the Warro gas will be available for non Alcoa customers.
So only 30% of Gas will be available to WA customers.
Alcoa primarily needs gas for their 40 year mine life of bauxite deposits.
TSV's 10% stake will be bought out buy Alcoa.
make no mistake about it.
Only question is what price...
my guess is 30c minimum once confirmation of first well is proved commercial. This is a fait accompli.
Gas Reserve size is huge if you read available commentary on Warro Gas field.
Plus on recent announcement they have found a further 55m of net pay. This gas field extends deeper.
from http://www.engineeringnews.co.za/article/gas-drilling-to-provide-perth-with-new-gas-supply-2008-02-01
It was not until the mid-1990s that the field was re-entered and with modern completion techniques Jonah was established as one of the most prolific gas fields in North America. It currently produces 680 MMscf a day from 2 400 wells with a total estimated recovery of greater than 14 TCF.
The Warro-1 and the Warro-2 wells have a number of significant similarities to the Jonah Field. Some characteristics in the Warro Field are considered superior to those found at the Jonah Field. The thickness of the pay intervals are greater, more laterally continuous and have higher permeability than the Jonah Field. The lateral continuity of these sands suggest larger drainage areas for each well and makes the field a candidate for horizontal drilling, both of which reduce the number of wells required to develop the field
regards
TSV Price at posting:
3.1¢ Sentiment: Buy Disclosure: Held
