"Is the industry constrained by the lack of equipment? How badly if at all?" you said.
That's correct. The industry is constrained by the lack of equipment.
However I think we have more important factor which causes the main constrain here. It is;
the lack of expertise
If you don't have the right expertise how you would be able to chose the right equipment even though you had many choices of equipment! You wouldn't.
That's the main problem I guess.
O&G bearing shales are totally a new concept and fracking is new process for Australian O&G industry. As you know it took ten years to understand the shales and develop techniques to frack them in US. No one knows how to frack the shales other than US experts.
How many of these company you have listed above working with the US shale experts you reckon?
NSE has this opportunity. Conoco which has the best shale expertise in US should be now involving the rig selection process with NSE. I think they didn't involved in the selection process of MB Century rig.
Conoco with the US shale expertise involves in every level of process not only the rig selection.
There are now couple of rigs available in WA. (Slampoil also said that two of them were coming to the ports). More of them are coming in next year. There might be an abundance of super rigs next year in WA.
However there are constrains here; - Where are the trained and experienced rig personnel to run them? - Who is going to operate them? - With which kind of expertise?
I think NSE has couple of rig choices in WA now and they would be able to drill later this year if they pick one of them as they said on the quarterly. I think they are being very careful this time as they are are trying to lock ina 3-4 well drilling program.
NSE as the operator of Goldwyer project needs experienced managers in the operation of these super rigs with shale O&G expertise I would say, however it does not matter for now as our first target is the conventional trap in the GB-1 location I BELIEVE. That's what wea are going to make the big money from first.
NSE Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
