business & sp disconnect

It's amazing to watch the turn in market sentiment over the past few weeks! All things positive are now all things negative, and it is getting to the point where we are spoilt for choice ...... many stocks being given away stupid cheap and getting cheaper.

The good news is that it's business as usual over at BPT and specifically the upcoming fracking of Holdfast and Encounter. After recent discussions with BPT Management re. progress, strategy, etc, the disconnect between the REAL business and the markets interpretation is crystal clear.

A brief summary (some old and some new) .......

1. Everything is on schedule with fracking expected on the 20th May.
2. Vertical fracking will be conducted on Holdfast first, then Encounter,
3. Flow rates will be available within a few weeks of fracking , however, this *may not* be released to the market until Encounter fracking is completed, meaning that both results *may* be announced at the same time.

It is important to note that the vertical fracking is being conducted for the purpose of determining the optimal zone within the REM. This will ensure maximum flow rate during horizontal fracking.

In addition, the actual flows from the vertical fracking are expected to be less than the latter horizontal fracking. The reason for this is that the wells are not an ideal width for maximum flows due to the fact that they were intentionally widened whilst coring.

This is not an issue in any sense as it was planned this way..........

1. Drill and core Encounter & Holdfast to determine GIP and concentrations.
2. Frack the same wells in order to pinpoint the most effective zone for horizontal fracking.
3. Undertake horizontal fracking in the precise area as determined in 2. (expected in Quarter 3)
4. Connect to the "grid" as a pilot process.

We discussed the pilot strategy/logic in more detail and the infrastructure/economics etc.........

The gas pipes (owned by Epic Energy) run right between Encounter and Holdfast and have addition capacity to transport gas from Pel218 to Moomba.

Epic site: http://www.epicenergy.com.au/
Moomba site: http://www.santos.com/exploration-acreage/production-processing/moomba.aspx

Due to the proximity of PEL218 to the pipeline, the connection cost is minimal (this is a big big plus guys!!!).

The pilot is forecast to run 5mcf/day. Once the pilot is up and running it is expected that a major will then farm in and begin expanding the number of horizontal wells and move to full scale production (end of quarter 4).

Lots more detail discussed but I think this provides a good glimpse into the near future for BPT/ADE......

* First class asset!
* First class management!
* Astute plan and short timeline (all planned for this year)
* Perfectly geographically located to infrastructure (simplifying connection and minimising cost)
* Additional available capacity
* Being closely watched by the majors

Other than the obvious market fear there is zero reason to sell and more reason than ever to buy at these levels.

Add to the aforementioned the recent Killa success and likelihood of additional volume, 855, 218 post permian and the suite of other quality projects ....................

ADE offers seriously compelling value and a wealth creation opportunity for those that can leave their emotions at the door!!!

Now, who wants to buy my shares??? LOL