The 7 previously drilled holes increased the prospective resource to best case 14.6tcf , with having only explored 1.4% of the 30,000km2 PSC
if we assume that the pilot test wells are a success and prove commercial gas is viable in the Nomgon sub basin, assuming also that every other sub basin hosts similiar gas bearing coals with good permeability , then in my opinion its completely within belief to think that the prospective figures will not only double , but triple to our absolute stretch of 40tcf within a 2 year timeframe
the drills will do the talking and all that jazz, everyone is conservative for good reason , but we have tavan tolgoi data telling us there is gas upto 15m3/t while the DAF figures are great why not 20m3/t or better ? .... show me those 150m+ coal thicknesses with 15m3/t gas content
obviously a huge speculative statement that I'm happy with anyone to disagree with, all im saying is yes EXR has been a fairly painful & monotonous hold for the last 6 months , and it will most likely continue throughout the year if all these restrictions and delays continue to plague the program , or if the pilot test wells are horrible
BUT , the upside can get really f***en good, really f***en quick starting with the contingent resource booking,
EXR Price at posting:
17.5¢ Sentiment: Buy Disclosure: Held
