Guys Doing a bit of reading and thought I would post this just to give people on why I like this millidarcies word.
cheers
"The past few weeks have been tough for CBM Asia. The news we have been waiting on finally came out. And if you looked at the market's reaction, you'd think it was terrible news. But it actually was very good news.' happening and why CBM Asia is, although it's a speculative stock, quickly working its way up to one of my largest holdings.
Over the last few months we've been waiting (and waiting some more!) to learn the permeability of CBM Asia's coal bed methane (CBM) project. We weren't the only ones though; a lot of shareholders have been eagerly awaiting the news.
A few days ago the company announced the results. In what I call the 'the most confusing press release in history,' the company announced its CBM project had 500 milliDarcies of permeability.
The reaction to the news was a bit disappointing because almost no one knows what the heck a milliDarcy is and whether 500 of them is good or not.
A bit of research, however, would have shown you that 500 is very good. For example, the permeability of the Ghawar Field in Saudi Arabia is a bit over 600 milliDarcies. Ghawar is the largest oil and natural gas field in the world, produces oil for less than $2 a barrel, and has plenty of cheap natural gas.
Basically, 500 milliDarcies of permeability is absolutely spectacular.
However, CBM Asia did make a mistake. When they drilled the test well, they failed to trap the gas in a canister to test the amount of methane in it and there's no way to retest the well. Now, that's the missing link.
http://www.theenergyreport.com/pub/co/724
AKK Price at posting:
4.9¢ Sentiment: Buy Disclosure: Held
