This pipeline study makes perfect sense when you consider the likelihood that BUL's Galilee permit ATP 813P has the same coals as the nearby Rodney Creek.
AGL have farmed into Rodney Creek with a $37m investment to gain 50% of ATP 529P. They maybe thinking of supplying the Barcaldine power station which is just 80 km away.
Initial results from Rodney Creek No. 8 (tested by Eastern Corps majority owned Galilee Energy in 2007) showed an aggregate of 25m of coal thickness and 97% - 98% methane content. These results subsequently resulted in AGL's farm in!
Looking ahead BUL management are smart to want to understand the economics of a pipeline to the coast for LNG purposes and/or supply to Stanwell. They're thinking of the bigger picture, especially as there is now so much happening in this region as far as CSG is concerned.
Cheers!
BUL Price at posting:
20.0¢ Sentiment: LT Buy Disclosure: Held
