G'day Kiwi,Bow have booked some good 3P numbers. They are...

G'day Kiwi,

Bow have booked some good 3P numbers. They are selling it very well. They do a few things I don't like.... like booking reserves from two very different coal measures on the one tenement and not distiguishing between the two even though gas deliverability is vastly different. They also report these huge gas content figures for high ash coal on a dry ash free basis making it look far better than it is.

Those in the industry are wondering how they have booked some of these reserves as other players in the basin have not been able to get commercial deliverability out of those formations... i.e. Fort Cooper and equivalents.

Bow are playing it the way you want to see it... i.e. setting aggressive targets and chasing them. While Bow are yet to book 2P reserves they are well on their way to bringing quite alot online in the next year. Once you set up some pilots and do a bit of infill drilling those 3P's are pretty easy to convert to 2P and should bring in more 3P.

1P I wouldn't worry about as its all about the producing field and isn't as important as the 2P which are almost as good.

Queensland is getting the attention due to the mega dollars being spent. However I think it is the slick marketing and forward projections that are earning Bow a significant premium.

Gaz