I'm sure I'm not the only one waiting with bated breath for the L7 3D seismic assessment to be announced. To borrow a comment from @sky11 it will be "lifechanging for TEG." My question is just how big could it be for TEG and how would others see it play out?
TEG upgraded their prospective resources to 617 BCF and 19mmbls in April this year. I'm assuming that the upgrade was informed by both the progress at Waitsia and Lockyer Deep. There has been zero reaction in the SP so no-one believes it yet.
But if the 3D assessment comes back positive what happens then? I tried to run a comparable based on Beaches share of Waitsia and NWE's share of Lockyer Deep. I realise TEG is long way off either of these projects but if L7 proves up the numbers are pretty amazing.
So what are the odds of L7 proving up? Would it be as high as 20-25%?
I already hold TEG but am tempted to buy more just based on the potential of L7. At 1.3-1.4c there has been no value apportioned to L7 as yet but once 3D assessment is in that opportunity either way will have passed.
Does anyone else feel like TEG might have a tiger by the tail? I realise its a straight bet on the outcome of L7 and I'm interested in the views of others who are less seismically challenged than me.
TEG Price at posting:
1.4¢ Sentiment: Buy Disclosure: Held
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