increased price target $0.54, page-16

rifici
on the pilot plant which I think might be a misnomer if its going to be the only gas processing plant for the next 3 years or so - can't agree more on the mystifying reasons for delay, but I can think of a few

* it is larger than originally planned and / or will cost more than SEH can currently commit to. although I saw some reference somewhere to "pipe ready gas" ??

* they are waiting for the second gas sales agreement to happen before committing.

* waiting for agreement from partners to commence or make a statement.
I happened to speak to RB himself, co-incidentally in WA, when I rang the company last week and he explained what a slow process it was getting agreements from the numbers of partners involved before any public statement can be made.
so maybe its the same situation with the gas processing plant.

on lixing east:
I have noticed that most of the wells have been drilled in the vicinity of the major gas distribution hub for the area.
assuming an equal amount of lack of knowledge on the acreages is known at the starting point - then the obvious place to start exploration is where the least costs to pipe the gas will occur. this hub is also relatively central to both lixing west and sanjaiobei - the bulk of the acreages by area.

so you can make a reasonable assumption the reasons that linxing east and the eastern part of sanjaobei have been little explored is not because of less expectations, but simply because of unnecessary expense at this point of the project.

a small number of wells have been drilled near another gas distribution hub at he northen end of linxing east. but unless the gas finds in this area were extraordinary they would not wanting to be building a second processing plant here, and it would probably be to expensive at this early stage to connect them the current proposed plant ??

gk