The BG bid for Origin puts coal seam gas in the spotlight.
http://www.theaustralian.news.com.au/story/0,25197,23625140-643,00.html
"Australian Bureau of Agricultural Resource Economics (ABARE) forecasts that domestic consumption of gas will double in the next 25 years; that the supply of gas will decline as important assets such as the Cooper Basin onshore gas reserves decline; the growing likelihood that this gas will not be replaced by a proposed $7 billion Papua New Guinea-Queensland pipeline; and a move by state governments to mandate that a certain percentage of electricity generation must be powered by gas.
Put simply, with demand outstripping supply in the coming years, and CSM moving from niche to mainstream following breakthroughs in technology that have made the projects commercially viable, independent CSM entities with sizeable reserves will become much more attractive than they were"
From the 19 March Sapex CSG presentation:
•Potential for 10-30 TCF gas in place in Arckaringa Basin
•Gas content of coals not yet known
•Farmout to Eastern Star Gas (ESG) in PEL’s 117, 121, 122,
interest earning in stages
•Drilling program being finalised
•Drilling/coring/logging expected to commence during 2Q 2008
SXP
sapex limited
