CSG/fracking has a really poor public profile and federal and state governments are behaving very unpredictably in responding to that environment. Main concern seems to be around impact on ground water. To give you an idea as to how strong this the NSW govt is heavily restricting gas production even when faced with a situation of not having enough domestic gas to sustain current industry. TTE current drilling approvals process has reflected that shifting environment
Another consideration is the number of rigs (and operators) in Australia is tiny compared to US. Our experience levels are way behind that of the US and when you overlay large cost per well that is not good mix for O&G juniors with shallow pockets.
That's why the AD play for TTE is a good one. I don't see the need to roll the dice big time here if they can drill shallow wells on AD with much better infrastructure support with long term local knowledge of salt domes.
When we have a spare $100m lying a round then go for the exotic plays. Govt might have settled at bit by then
GEV Price at posting:
13.0¢ Sentiment: Hold Disclosure: Held
