newsletter , page-10

Gassed,
A few comments on your overly optimistic and somewhat misleading post.Anybody in the oil/gas/CBM business will confirm to you the following.

1. The Premier of SA cannot give any such LNG Plant approval. The process has to go through the same lengthy process as in QLD.Many Depts involved including Dept of Environment.
2. Certification of 2P reserves does not require a sales contract, but it does have to be capable of commercial production at existing gas prices.A sales contract is required if you want to book the reserves in your accounts.
3.ICN will only have a sales contract with Stanwell or anybody else after sufficient reserves are certified.They do not have a sales contract yet.
4. You say words to the effect that ICN is just a drilling program away from being able to certify 2000PJ's.
The fact is , a lot more wells are required to prove up 2000 PJ's and a lot more time.
The steps involved are : drilling dozens of wells , pumping out the water so the gas can come up the borehole,
putting all the wells on production testing, feeding the raw data to the independant Reservior Engineers who will model the production profile (and decline) and forecast the number of development/production wells necessary.
Then based on that, ICN will run economics and see just how feasible it is.
All this is a very lengthy process, and given the results last time, there is no certainty that ICN will come up with the goods.
Occam