Striebs.. this is the Cooper Basin "Australia's premier onshore O&G basin".. there is very little acreage that is not currently under title. My understanding is that companies can lodge an EOI in a new area but its subject to a competitive tender process. Given the work Santos/Beach and RLE are doing in the Cooper Basin I reckon RLE might not have deep enough pockets to snap up any adjacent land releases. In any case a land release is at the discretion of the QLD Gov and not RLE.
RLE have a MOU with Santos for processing and the pipeline is adjacent to these 3 wells. This pipleline ties into all major domestic markets (Sydney, Gladstone, Adelaide etc). Capex to tie into the existing network is minimal given how close the wells are to the existing infrastructure. The cost and timeframe to tie in these 3 wells and start selling gas is as low as you can possibly get!
Ultimately in a scenario of full field development RLE would process the gas on-site. In any case the only real risk this project is flow rates and if we hit >3mmscf/d we will be laughing all the way to the bank and Scotts's Disallowed quote wont be a fairy tale. The DFIT and associated report suggests >3mmscf/d so i'm holding on to my hat.
RLE Price at posting:
11.0¢ Sentiment: Hold Disclosure: Held
