China has an insatiable appetite for gas and here we are right...

China has an insatiable appetite for gas and here we are right on their doorstep, not thousands of kilometres away.

I was just reviewing some information over the past few years and came across this within an EXR presentation dated 18/10/17, two CBM/CSG peer companies within the region:



Interestingly Lone Star made a successful takeover bid of AUD 530 million in late 2018 for ASX listed Sino Gas (CBM assets in the Ordos Basin, Northern China). Green Dragon’s CBM assets are in Shanxi province, also in Northern China.

We have 7,000,000 acres and according to ERCE we have 40.1 TCF (un-risked) and 7.6 TCF (risked at 19%). It’s worthwhile comparing these figures to the two others. With reserves (likely later this year) and farm outs, you can see where we could sit with a market cap.

Preliminarily results from Nomgon-2 could come at any day and likely results IMO may include gas bubbling cores and thick coals (similar to Nomgon-1 preliminary results on 5/2/20).

In light of all of this, it’s not hard to understand the recent share price appreciation, as the vast potential resource of our PSC is being de-risked by a very capable team to feed a number of gas hungry markets.