yesterday I made the point that, after the terrific results of the BPT shale gas wells, that it brought a new dimension to ICN. Whilst we at HC have been surmising as to the prospectivity of ATP855, we now have some real results from the Holdfast well. We can safely make the assumption from past BPT pronouncements that the shale resource continues into ATP855.
IMHO, this BPT result is a watershed for gas industry in Aust, because it is potentially such a huge resource. Without a doubt, any gas produced from shale in Aust, is going to be developed at a far greater pace than CSG !
We at ICN have been rightly consumed discussing the issues of RJ, control, past fiascos, the Chinese GSA, the STanwell GSA, the very poor performance of ATP626, salaries, offices etc etc.
But imho, this BPT result is a watershed. The potential of ATP855 is no longer a "sleeper".
BPT has added huge value to this ICN asset, which is why BPT will fight tooth and nail to get its hands on a share of ATP855.
We at HC have been questioning where ICN would get the funds to prove-up and develop the resource. How to drill all those wells needed to get to that 2P resource level required for development?
I just read the following article in todays Aust wrt Bandanna. I thought their situation was not dissimilar to that potentially of ICN. Also, I recall a CSG coy in Galilee Basin, i think Exoma, who sold a 50% share in permits to Chinese for $50m, all for drilling - so it can be done.
But the bit I like about the article below, is that UBS are seeking interest for a range of scenarios! No reason why ICN could not take that approach imho.
We should now be a real target for an experienced shale gas player to take an interest in a farmin, or much less likely, a takeover.
(also, now with such BPT results, why wouldn't a Chinese O&G coy feel more comfortable investing in ATP855 in order to supply Sino GSA, when much of the work has been derisked? Customer found, Chinese Govt approval obtained, GSA signed, gas resource of sufficient size identified, flow rates initially established - acreage still dirt cheap, value of acreage very much unappreciated, and ICN with no funding to proveup and develop resource, plus a potential further 40% to farmout?)
much further to play out with this scenario imho.
************************************* Anglo American sees value in coal too
AS all eyes focus on that other coal deal, it's worth noting that Anglo American is thought to have made a late entry into the $1 billion-plus auction for coal play Bandanna Energy.
It is understood that Anglo American has joined offshore bidders including India's Aditya Birla, JSW Steel and Jindal Steel in the second round of the UBS-advised sale process.
The key issue is whether Bandanna is sold as a whole or in pieces. UBS kicked off the process back in February, calling for expressions of interest on three fronts: 100 per cent of Bandanna's interest in any of its development projects, minority equity interest in the development projects, and a change of control transaction at a group level.
The company has 1.48 billion tonnes of JORC-compliant coal resources in exploration projects in Queensland's Bowen and Galilee basins, but it needs capital to fund their development.
Final bids are due towards the end of this month. The miner, which has five projects in Galilee and Bowen basins at advanced stages of evaluation, has been valued at $1.4 billion by Wilson HTM.
(20min delay)