Some commentary today focused on the comparatives between SHG...

Some commentary today focused on the comparatives between SHG and BOW and their well results. I thought the following might be of interest although it contains no figures on the wells themselves. What it does say is that the SHG wells "flowed gas from the beginning" which was said to be a good sign/expectation of commerciality...same as BOW where the wells flowed from the beginning.

It also refers to the possible ultimate 3P Pj of gas at 1000Pj over 600sq kms. BOW has 45% of around 900sq kms of prospective Walloon Coal measures. So although there is a long way to go, the comparisons are strong as long as gas is there and coal thicknesses are good. So far, so good. Next well is very important and success is likely to see significant rerating IMHO.

regards
DF

Extract...report is dated 11 June so is pretty old now but still relevant given where SHG has got to
http://www.sunshinegas.com.au/01_cms/details.asp?ID=43
"Lacerta CSG project is progressing well SHG has drilled over 20 wells in the 100% owned Lacerta license, an area of about 600km2. This includes three pilot plants, where early test production has recently commenced, with encouraging flow rates. CSG wells typically flow water in the early months as the coal seams de-water, followed by increasing gas production. The Lacerta wells have actually flowed gas from the very beginning, indicating good potential for
commercial flow rates.

The drilling program has two main purposes: (1) Demonstrate commercial production rates from the local Walloon coal measures and: (2) Define the size of the reserve and the ultimate resource potential. Results so far have been encouraging enough for SHG to sign a Memorandum of Understanding to sell 8PJ of gas per annum for 10 years starting in 2010. SHG has also engaged MHA Petroleum Consultants of Denver Colorado to get an independent certification of its reserves position, with a report anticipated late June. The company is hoping for a Proven & Probable (2P) reserves position of about 250PJ, and we
expect a Possible (3P) reserve in excess of 1,000PJ."