Ann: Seismic Acquisition Underway, page-53

If EXR prove this up as an economic development then imagine a scenario where there is a well every few square kilometres of productive basin.

A 10m coal seam at a SG of 1.3 would have 13 million tonnes of coal per square kilometre. At a gas saturation 10m3/t you get 130 million cubic meters of gas per km3. Times 35.3 to get to cubic feet, therefore 4.5 BCF per km2 of coal.

In monetary terms a BCF is worth around $6-8 million therefore 4.5BCF/km2 = $27-36m/km2

EXR have 28,000 km2 of exploration ground. It won’t all be productive but doesn’t need to be. The point is we’re talking huge gas volumes if proven. The project if proven will likely cost well in the billions to develop however it’s only going to get developed if the return is there.

At this stage we’re spending a couple of million to drill and prove the thesis that there is potentially 10’s of billions of dollars worth of gas in place. The cheapest bang for buck. The next stage would be to prove its extent, also a relatively cheap exercise.