thoughts on csg and energy for the future, page-15

favs,

big bad wolf here to answer your question.

MEL, BOW and ESG all have a similair problem with their COAL SEAMS, they all have very low permeability. Deliverability from these types of fields is enhanced typially by either lateral drilling or fraccing. In some rare cases production above EUR at very low rates is sustained only by very cheap labor and drilling. But the vast majority of low perm CSG/CBM fields are tapped via the frac or lateral drill.

BOW is a hot prospect for a takeover, if it is able to deliver on its 2P upgrade program - as yet it hasnt. I am rather positive about BOW being able to deliver from its lateral well pilots, as I am Blue energy which has a large asset in the Bowen Basin (Moranbah area) that they have spent most their money on - not the Galilee as psi makes out).

If GLNG 3 is on the cards, then ESG is a VERY HOT prospect.

As for the tight comment, I am assumming that psi is referring to the low porosity sandstone payzones that they found in their kingfisher well - typically called 'tight' gas. The Ripley Road Sandstone zone that flowed well would not be considered tight.

Anyway, this is well off the topic of ESG.

Does BOW really have more reserves?

ESG and Santos currently have 6312PJ on a 3P + 2C basis; from PEL 238 alone. ESGs share of this is 4102PJ.

BOW has their contingent resource as 3C, so to comapre apples with apples, we must ask what the 3P+3C is?

PEL 238 ESG share of 3P + 3C is = 5857PJ
BOW total from all of its tenements = 5267 PJ.

Looks like they have less to me.

Now lets add ESGs other contingent resource....
from PELS 6(899PJ), 427(1229PJ), and 428 (408PJ); thats a cool 2536PJ.

So maybe a current direct comparison actually looks like
ESG = 8393PJ
BOW = 5267PJ


If you just want to compare 3P to 3P, ESGs 1818PJ to BOWs 2739PJ; then BOw 'has more'. However, I would grade them both on the 2P rather than the 3P anyday as ESG has proven economic flows, BOW is YET to do this.

I hoep thats not all too arrogant for you, remember you did ask to set the record straight.

SF

I hold BOW, ESG, and MEL