U are right, what makes this deal even more lucrative is the close proximity to a power station.
Its good to have all that coal & reserves, even better when there is a contracted deal or mkt to sell the gas. I'd say STO are in the right place, right time.
The beauty abt this acreage, is that the coal has a higher Gas Saturation, which is the key element for any prospective CSG buyer. IMO, there's is a likelihood of a bigger bite in the future, post December.
This deal now takes STO's 3P reserves from 5999 PJ to 6623 PJ, with another 676PJ left on the table. Nice way to accumulate for any cashed up player :)
cheers
ESG Price at posting:
88.5¢ Sentiment: None Disclosure: Not Held
