Put simply, the downhole pressure is being reduced in an almost linear fashion with respect to time and is close to the critical desorption pressure at which significant quantities of gas will desorb from the coal.
The fact that the downhole pressure is reducing slowly would seem to indicate that the permeability is good and that water is being drawn from a considerable distance.
This should point to a higher well spacing which leads to a lower CAPEX and OPEX for the gas field.
Once critical desorption pressure is reached, and commercial quantities of gas are produced by the pilot the stated contingent 2C resource of 1,281 PJ will be significantly derisked.
From then on it is simply an exercise of acquiring say $30M to drill say 5 more pilots and scenarios 2 and 3 become a reality.
Since we are talking about 2C and 2P resources the following is a link to a RISC presentation on ASX reserves and resources.
At this very important juncture I would be very happy to meet with interested TMK shareholders face to face at a suitable venue at Hornsby or Chatswood in Sydney to present and explain the Model live on screen.
TMK have indicated that they would be happy to provide my contact details to interested participants.Please feel free to ask questions on this forum.
Best Regards OGP
TMK Price at posting:
0.3¢ Sentiment: Buy Disclosure: Held
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