MEL 0.00% 0.3¢ metgasco ltd

keeping things in perspective, page-12

  1. 534 Posts.
    As SeamFiend suggested in post 4987597, the reverse could be the case. The conventional gas can be more easily and cheaply accessed and with better flow rates compared to the CSG, so it will be easier to find a market for it. Once the market is established and the infrastructure in place, and with the cashflow from gas or electricity sales, the CSG resource can be developed at leisure and this gas added into the mix to eke out the conventional gas.

    The point is, unless KF and the other conventional prospects turn out to be multi-tcf whoppers, most of MEL's gas resource will remain CSG. At present, due to various factors, it appears there are considerable hurdles in a small company monetising CSG. But the boost provided from having even a small conventional gas resource that is onshore near population centres will give MEL an advantage that other CSG explorers don't have.
 
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