re: Ann: Metgasco evaluates gas supply to Gla... From this announcement:
# Metgasco currently has 2,153 PJ of independently certified (3P) reserves in PEL 16 (100% owned) ... including PELs 13 and 426 (100% owned), the Company has developed an internal prospective resource estimate of approximately 14 Tcf (14,000 PJ) of coal seam GiP in its tenements.
# Additionally, Metgasco has begun to delineate the conventional gas supply potential of the Clarence Moreton Basin.
# Metgasco has recently concluded a review of the coal seam and conventional gas supply capabilities of the tenements it operates in northern NSW (PEL 16, PEL 13 and PEL 426) which indicates that the gas resources present within these areas are sufficient to supply an LNG plant of up to 3 million tonnes per annum over a 20 year gas supply contract term.
From http://www.apia.net.au/wp-content/uploads/2010/04/1.-Wheals.pdf I calculate 3 mta is equivalent to 3429 PJ over 20 years ... that would be P2 reserves I guess.
Standby for some reserves upgrades over the next 6 to 12 months imo.
I just can't imagine MEL management heading down such a public LNG route without being extremely confident they have the required reserves nailed. Needing 3429 PJ from a CSG GiP of 14,000 PJ plus conventional gas reserves doessn't seem a stretch.
Dex
MEL Price at posting:
50.0¢ Sentiment: LT Buy Disclosure: Held
