atp 364

Went over AGK's annual report just now to look again at what they booked for ATP 364 over the 12 months to 30th June 2010.

Their share of reserves (50%) went up 382% from the previous year from 52 pj of 2p to 246 pj of 2p..

3p reserves went from 431pj to 1307pj..

This means ATP 364 now boasts 2614 pj of 3p and 502pj of 2p.

last time i checked a few months ago it looked like the development expenditure for this was about $50 million on Arrow's part so that is 25 million or so for AGK to back in for the 246 pj of 2p reserves.

Again this underscores what it should mean if BUL can get their 456 pj across to 2p as planned on Monslatt.

AGL have a target to hold 2000 pj of 2p reserves and between the Bowen assets and their other projects in NSW they have 1578 pj of 2p already, but half of these reserves are in Moranbah and ATP 364. If they sell any of this to Shell then they slide away on their 2000pj target and at this stage they don't need the cash.

The GB is going slower than planned and they don't say alot about it in the report- or at least nothing substantial. I wonder about that play at current gas prices.

Anyway..to the point...AGK would have to be somewhat blind don't you think not to be spotting the success of ATP 364 and thinking 'would be nice to have more of this asset, but also realize a tidy profit for shareholders.

Joining the dots..AGK looks at BUL to replace reserves and down the track seeks to flog ATP 364 to Shell/Petrochina
Just a wild guess..but if fits their form from years past in this sector.

This is what AGK says in their Annual Report about the Bowen assets.

"AGL also maintains a substantial asset position in north Queensland?s Bowen Basin around Moranbah. Gas reserves in ATP 364P are earmarked for export as liquefied natural gas (LNG) by Shell/ PetroChina. AGL has rights to 50 percent of any commercial gas sales from the permit and is working to better understand Shell/ PetroChina?s plans to develop and pipe gas to Gladstone.