re: ****worth watching this week****
hi jrichardson...
i wouldn't throw the baby out with the bath water just yet.
the wheels are in motion..
plus have a look at the quality of managment it has, first class.
see article in weekend australian (16-17/10)& recent announcement.
Walloon Gas Future Beats US Nigel Wilson Energy Writer The Weekend Australian 16th – 17th October 2004 The Powder River Basin of Wyoming is regarded as the world benchmark for the development of coal seam gas. But Andy Lydyard, managing director of Perth based Comet Ridge, believes Queensland’s Walloon Coal Measures could ultimately be far more important. Covering more than 12,000 square miles the Powder River Basin coalbed methane (CBM) play is producing close to 1 billion cubit feet of gas a day from 11,000 wells. A further 3000 wells are drilled but awaiting delivery systems or development approvals. Success at Powder River has spawned attempts around the world to recreate the model. At last count there were at least nine Australian-listed companies dedicated to finding and exploiting coal seam gas from the country’s extensive coal measures. Andy Lydyard is unashamedly a CS enthusiast. Working for the J M Huber Corp in the US, he headed a team the built a business based on producing coal seam gas assets in the San Juan and Powder River Basins, as well as exploring the Raton Basin in southeast Colorado. He came back to Australian to join oil and gas exploration minnow, Strike Oil, in 2001 and since then has overseen the company’s involvement in Australia CSG activities, leading to Strike spinning off Comet Ridget last year. Comet raised $5 million through a initial public offering and listed on the stick exchange in April. Today around 8 per cent of the gas consumed each day in the US - roughly 4.4 billion cubic feet – comes from coal seams. Australia, he says, has very significant reserves and low finding costs from the extensive gassy coals in Queensland and NSW. The Walloon seams in Queensland’s Surat Basin are extensive (they cross the NSW boarder into the Clarence Moreton Basin) and may contain four to five times as much gas as Powder Bay. “There’s a growing market and developing infrastructure that can deliver CSG competitively and reliably to substantial customer,” he said. Lydyard acknowledges the Queensland Government energy policy with its current focus on power retailers has created a new market for gas. The Queensland policy, which requires that 13 per cent of the State’s electricity generation be fuelled by gas, has resulted in a rapid increase in gas demand and significant contracts for CS gas producers. Comet is already involved through its joint venture with Brisbane-headquartered Arrow Energy in contracts with Warnbro Power, Ergon Energy and BP’s Bulwer Island oil refinery to supply gas from the Tipton project near Dalby in Queensland. Lydyard said the current focus is on converting the significant gas resources at Tipton into certified reserves, which he hopes will be by the end of this month. That could lead to a 2005 drilling program of more than 100 wells. But coal seam gas still has issues. Listed CH4, the Macquarie Bank offshoot that won a Queensland Government tender to supply gas to the Townsville power station, a project that includes a 550km pipeline linking the Surat Basin to the north Queensland city, reported last week some of its wells were taking longer to achieve needs rates of production.
5th October 2004 Number of Pages: 1 AUSTRALIAN STOCK EXCHANGE Via Electronic Lodgement Dear Sir: Rapid Increase in Gas Rate at Tipton West Pilot ATP 683P, Dalby Block, South Eastern Queensland Comet Ridge Limited (ASX Code: COI) has been advised by Arrow Energy Limited (ASX Code: AOE), Operator of the Tipton West Pilot, (Arrow 80%, Comet Ridge 20%), that the pilot has shown an almost four fold increase in gas production to over 285 thousand cubic feet per day (mcfd) and that production is increasing daily. This rapid increase has resulted from the addition of three new wells to the existing four well pilot. The first, Tipton West Pilot 13 (TWP 13) was brought on line 2 1/2 weeks ago and is now producing 141 mcfd and is increasing at around 5 to 10 mcfd per day. The second, TWP 9, was brought on stream on the 29 September and is producing 15 mcfd and rising. The third well, TWP11, commenced production on 30 September and is already producing 55 mcfd and rising. The results from the new wells exceed expectation at this early stage and provide confidence that an economic flow rate (200 mcfd from one of the wells) will be achieved in the near future. The initial 4 pilot wells were brought on stream in May of this year. Gas production was achieved immediately and pressure responses were observed in monitoring wells up to 7 km away. This information plus the data gathered from a carefully laid out core hole drilling programme, enabled our independent reserve consultants, US based Netherland Sewell and Associates Inc. (NSAI), to provide a certified “Possible” reserve estimate of 1,086 petajoules (PJ) in July of this year. (For comparative purposes, this equates to approximately 11 years of current gas consumption in the State of Queensland.) NSAI advised that the more commercially significant “Proven and Probable” (otherwise known as “2P”) reserve designation would be assigned when one or more wells demonstrated economic production rates. These three new wells were added to accelerate the dewatering process and to demonstrate that the Walloon Coal Measure coals can produce gas at economically viable rates based on anticipated well costs, operating costs and revenues from sales. Achievement of this commercial rate and the subsequent reserves certification will facilitate conditional gas sales contracts that the Joint Venture has with three customers, (Ergon Energy - 3.2 PJ p.a. for 15 years; BP - 3 PJ p.a. for 5 years; and ERM Wambo Power – 4 PJ p.a. for 15 years) to proceed to the negotiation of definitive and binding gas sales agreements. First gas from Tipton field is scheduled for January 2006 at a rate of 10.2 PJ p.a. For further information contact: Andy Lydyard Tony Dawe Comet Ridge Limited Ward Holt Ph: (08) 9225 7108 Ph: (08) 9221 8722 Fx: (08) 9225 6100 Mob: 041 3322 110 Web: www.cometridge.com.au
Subject re: ****worth watching this week**** Posted 19/10/04 7:28:34 PM - 8 reads Posted by jrichardson Post #394276 - in reply to msg. #388738 - splitview
Don't think I will subscribe to the newsletter.
Sandybeaches is this result usual?????????/
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