Big thumbs up for a very thorough expose! All I can say is that DC did indicate to me that the results at Moree-1 and Kurrabooma were "encouraging" because the main risk was not whetehr coals were there but whether they were gassy .. and they were. That said to me that they had/have a fair ideaof what coals are present but that previous NSW government geological survey drilling had not specifically been looking for gas content so that data was not available.
It remains VERY intriguing to postulate why they only drilled to less than 500m ... particularly as it was ESG paying and you would think that Barry Smith would have had in the T&C of the farmin agreement that a proper assessment of ALL potential coal bearing formations was done.
The other most intriguing fact in all this is that as you say ESG had identified up to 3.5 Tcf of high potential targets mostly in PEL 6 including some deeper Maules Creek prospects .. and yet they chose to drill Moree in the Coreena coals in PEL 427 and Kurrabooma also in the Coreena coals and way out in PEL 428 in an area where there were NO prospects defined. BS and DC justified this to me at the time saying that before they could drill in PEL 6 they needed more seismic .. which to be fair was done and defined the 2 targets now being drilled in PEL 6.
H
OIP Price at posting:
7.5¢ Sentiment: LT Buy Disclosure: Held
