"While BPT continues to de-risk the geology, commerciality is likely to remain a key uncertainty given lack of previous commercial scale shale drilling in Australia and the isolation of the Cooper Basin. With operations currently far from being cost efficient, we are not likely to gain greater clarity on this until the production pilot program is expanded in 2012. That said management has received a number of approaches from US drilling services companies. BPT highlights that it expects cost to deliver gas could be as low as A$4/GJ by 2015, supported by advances in drilling technology (we note that some US shale operations could not deliver costs this low despite easy access to infrastructure, drilling rigs and fraccing crews and so significant uncertainty here as to the ultimate economics)"......what is everyone opinion on this ? it seems some in the market still think that even with this massive amount of gas that the project is still a little marginal ? I am not going cold on it, i am just weighing up the pro's and cons. thanks
ADE Price at posting:
14.5¢ Sentiment: Buy Disclosure: Held
