30mmcfg/d!!! on constrained euipt!!!, page-41

Norbert

the Yanks (US citizens) use "gas" to mean petrol, just to confuse us all.

Certainly US domestic gas prices have fallen to 25% of their level of 18 - 24 months ago. But they can't export the gas for many years, so for the time being, the price is a bit irrelevant.

World gas prices as at the end of Sept, 2012:

US Gulf US$2.80 /mmbtu's
Europe ~ US $8.70
India US $11
Korea/Japan US$13.50
RIOOOOOOO! US$12

And there is still unlikely to be a gas (LNG) surplus for yonks, so LNG investments look good for yonks.

The KAR Annual Report notes that WPL sold some of its Torosa/Brecknock gas (sw of Poseidon) to Mitsubishi and Mitsui earlier this year for what KAR believes was $800 to $900 million per TCF. A HUGE price.

If we are now comfortable with Poseidon having 7 TCF, then at these prices, it's worth $5.6 billion, KAR's 40% is worth $10 per share. Add something more if we find more - maybe up to double this - and for our 90% interest in WA314P, just north of Poseidon. We are looking to farm out a share of WA314P - and it could be worth a bit if the Santos Crown well only 5 km from our Poseidon lease advises a successful outcome in the next few weeks, or days.

Wilson's have just released a favourable comment on today's KAR ann:

"Initial analysis – The flow rate from Boreas is highly encouraging as it shows that the two major fault blocks at the centre of the Greater Poseidon structure are fully charged with gas and condensate and will flow at high production rates."