the renewed buying of late is probably explained by this excerpt from the shale gas presentation:
"Ongoing work with NSAI reaffirms NSE view that Goldwyer formation is highly prospective for shale gas. Acceleration of shale gas project approved. Final report expected from NSAI in April 2010"
in other words, any day now we could see confirmation that we are going for gold(wyer).
looking at the numbers:
1000-3000m deep, 200-500m thick.
180,000km2 in area, 37,000km2 of which is already NSE acreage. and the board is looking at further acreage.
this is a thick and massive shale, and it offers opportunities (similar to colorado county) to drop a few cheaper wells in first to get confirmation before digging deeper.
if the final report is what i am expecting it to be, we may see the first indications of volumes they are looking at. it is easy enough to do those maths ourselves, but i have avoided posting them till now as they will sound ludicrous.
along with possible exploration targets defined, the NSAI report will include a work program "tailored to obtain missing ?gas in place? information".
i guess this means a drilling program announcement is also coming this month.
i eagerly await the day the company announces their exploration target. these numbers could well set the market on fire, and will absolutely dwarf anything that we are hoping for from Colorado County.
NSE Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
