Ann: Prospective Gas Resources Upgrade, page-27

A very nice post Tui, I even gave you a thumbs up.

I do think we should also have realistic discussions on these various topics.

Whilst your valuation of the gas in the ground at $1M per billion cu feet is quite correct, I do fear that the Perth Basin is soon going to be awash with available gas for sale. The oil would be better but I think the die is cast and we will be drilling the gas prospect.

You choose the highest estimate of the likely gas find which is orders of magnitude higher than the lowest estimate.

Another, possibly worst fly in the ointment is the inevitability of a capital raising to finance our share of the drilling for the gas. Our share price is very low so we will need to issue a lot of shares to fund our 20% of the drill.
At .4 cents it will take 500 million shares to raise $2M, would $2M be enough to fund our share.
Then on finding the gas we then need to find a buyer for the gas. We would be the fourth big gas discovery in the Perth Basin. Waitsi, West Erregulla, Beach/ Mifsud and then us.

Very disheartening about the 3D results. Oil would have been such an easier market to participate in. Still don’t understand how you can find four metres of oil and then the 3D loses it all!!

Anyway, I am very grateful that we have 368 and the gas prospect, and also for STX’s Stirling work in finding huge gas field next to our 368. Without 368, the failure of Xanadu oil to make a splash on the seismic record could have been fatal for NWE.

Interestingly the drilling for gas in 368 seems to be an urgent undertaking now. It seems to be referred to as being drilled in H1 2020. Previously it was sort of June or late in H1 2020. I sense February/ March could be possible.

That big rig with two gas scalps hanging from its belt would be a good choice of equipment do to our drilling, and it is not very far away.

Looks like our Phoenix will get another chance to fly, hopefully finally achieving making a company.

Saltbus