Fully funded to production with a farm-in from MIE, a HK listed energy company.
Mgt expect to have 2P reserves of 500BCF (net to SEH) of gas by 3Q 2013, which is huge.
In March we can expect a reserve update, deep drilling on the 40% unexplored portion of its permits, and the start of fraccing with flow rates to follow.
Test flows on historic wells averaged 640 mcf/d and decline rates are expected to be lower than shale due to this being tight sandstone. Commerciality is as low as 125 mcf/d using a $7.60 mcf price.
Ordos Basin is the largest producing basin in China and has infrastructure in place already.
China desperately needs alternatives to coal - have you seen the smog in the northern Chinese cities such as Beijing.
Oh, and this is FA as I'm a strictly FA kind of guy.
