csg underground storage announcement

This should be of interest to most CSG investors.

Mosaic Oil (MOS) has been investigating the feasibility of storing 3rd party gas in the depleted MOS fields.
EVIDENTLY THIS IS NOT A NEW CONCEPT- I AM TOLD IT HAS BEEN USED IN THE U.S. FOR SOME YEARS.
The issue is finding a depleted field close to producing fileds.
Enter QLD CSG !!!
I gather that the Underground Storage will be ideal for new CSG fields. When a new well is being dewatered, water and gas is produced, until such time as the water declines and mainly gas is produced.
The waste water is pumped into evaporation ponds, but the gas is flared-off ie wasted.
CSG producers will be able to store that previously wasted valuable CSG, and store it in the MOS fields.
WHAT AMAZED ME ABOUT THIS MOS ANNOUNCEMENT IS THE SIZE OF THE STORAGE - 75 BCF - THAT'S ABOUT 7,500 PJ ?

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ASX ANNOUNCEMENT
Mosaic Oil progresses Underground Gas Storage discussions and technical evaluation
Mosaic Oil NL (ASX: MOS) advises that the Company is in discussions with a number of
prospective customers for the utilisation of underground gas storage at the Silver Springs-Renlim
gas field.
Commercial negotiations are being progressed following technical work indicating that up to
75 Billion Cubic Feet (BCF) can be stored in the nearly depleted Silver Springs-Renlim gas field.
Based on the preliminary results of reservoir modelling work conducted by Irrgang Reservoir
Management, an independent consultant, Mosaic Oil is confident that underground gas storage in
this high flow capacity reservoir possesses all the characteristics expected by its potential
Queensland based customers.
Mosaic Oil s Acting CEO Tim Petersen said that The Company has been reviewing the
underground gas storage opportunity since early 2008, and has identified this as a high value project
which could realise a new and significant revenue stream for the company as early as 1Q 2011.
The field could provide suitable storage for ramp-up gas for LNG projects, on-going gas production
management, as well as meeting seasonal gas demand and peaking supply for electricity generation.
Storage would also provide security in the event of supply interruptions.
Work is now underway to finalise the reservoir modelling and to conduct the necessary
geomechanical studies within the second half of 2009. These will underpin the planned conversion
of the field to gas storage. Commercial modelling and preliminary facilities design have commenced
with the assistance of consultants and are expected to result in a Front End Engineering & Design
(FEED) study also within the second half of 2009.
The Company expects to be able to provide shareholders with an update on the business case for the
project in the third quarter of 2009.
Mosaic Oil owns 100% of the near depleted Silver Springs-Renlim field, which now only produces
from one well. The Silver Springs-Renlim field was discovered in 1974 and has produced over
90 BCF of gas. The field is located near the Mosaic Oil owned and operated Silver Springs Plant,
and approximately 100km south of the Wallumbilla Gas Hub, the main gas hub in Queensland.