reserves, metrics and gas prices, page-2

Yaq

An extraordinary post ... I like your logics! We have always thought that any serious off-take deal would result in a significant increase in reserves in and of itself. I recall DC ages ago waffling on about how the Qld companies were being valued on their CR because their potential and eventual acquirers would themselves provide the market! It is probably still the case today.

My only question would be whether the "conversion" of CR to Reserves would under these circumstances be into the 3P category or 2p? I thought that conversion to 2P (and 1P of course) requires production data? We do know that a significant majority of the current CR is from the Bohena (as only a small part is from the Namoi) so there is around 3,000-4,000 PJ of that which could be upgraded. Hmmm .. I will have to think about this a little more.

In any case i think we all (mostly?) consider that the signing of an LNG off-take agreement would be a large catalyst for the ESG share price. Your assessement of relative reserve metrics adds another reason for an off-take agreement to be of utmost importance to ESG. As DC has said its all about commercialisation, commercialisation .... commercialisation!

H