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Market is different??? Yes many things are different now from...

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    Market is different???

    Yes many things are different now from 2010!

    Moratoriums and other restrictions in New South Wales, Victoria and Tasmania preventing or impeding coal seam gas development!

    Australian gas users have suffered as a result of the export of natural gas from Queensland and will suffer more if state governments persist with bans and moratoriums on the mining of coal seam gas!

    Australia needs to double production in six years

    According to the International Energy Agency, Australia produced 2,462 petajoules (PJ) of gas in 2014.
    Australia will need to lift that total output by 50 per cent just to meet its expected exports in 2020, according to an ANZ analysis from 2015.
    Even if domestic consumption remains steady, the nation will need to more than double its gas output from 2014 levels to meet export and local needs — if that's indeed possible.

    A large part of the increase will come from massive, proven conventional offshore gas resources located in WA's North-West Shelf.
    Energy crisis looms
    But the export boom is also relying on three giant liquefaction plants located near Gladstone in mid-north Queensland.
    Some of the Queensland coal seam gas fields that inspired the construction of those three plants have turned out to be less productive and costlier than originally hoped.
    That has forced LNG operators to turn to the east coast's conventional gas supplies, mainly from South Australia and Victoria, to fulfil their export contracts.
    These raids of the domestic market are putting huge upward pressure on local gas prices; gas was cheap until the LNG export boom kicked off.

    http://www.abc.net.au/news/2017-03-...here-is-not-much-we-can-do-to-stop-it/8340536

    "Advent’s two core prospects in PEP11 have previously been calculated via external assessment to have the potential for un-risked (P50) prospective gas resources of 472 and 2,131 billion cubic feet (“BCF”) respectively, with multi-trillion cubic feet upside (“multi-TCF”, Pmean). This resource assessment was originally comprised within the independent expert report disclosed to the ASX on 22 December 2010, and has not materially changed since that date.

    As noted in MEC’s 2016 Annual Report, Advent believes there will be a gas supply shortage from approximately 2019 that could potentially be met by the commercial discovery of conventional gas in the offshore Sydney Basin. The exploration potential of PEP11 is ideally located to meet that demand if a future exploration drilling program is successful. Furthermore, offshore exploration for ‘conventional’ gas resources is likely to be received more favourably by other stakeholder groups in New South Wales (“NSW”) compared with onshore ‘unconventional’ exploration in that state.

    Advent is planning and preparing for a small scale seismic operation to meet its current work program commitment. In addition, Advent management believe the best chance of de-risking the key prospects is to acquire a state-of-the-art 3 dimensional (“3D”) seismic survey across the prospective trend. Advent is therefore looking to bring forward the acquisition of a suitable 3D seismic survey to deliver a ‘drill-ready’ prospect as quickly as possible. This fast-tracking of future work commitments will be subject to regulatory support and approval, stakeholder approval and available resources. This proposed activity is supported by the MEC Board and confirms commitment toward future exploration success in the PEP11 asset."   ASX release 11/1/17
 
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