Its funny isnt it we are not talking in the piddly few thousands of acres here, we are talking in the millions.
If they can get some good 24 hour IP flow rates anywhere between 100 to 300 BOEPD average out of these first 3 wildcatters we will have a serious businness on our hands.
If you look at the main shale plays in the US being the Permian, Eagle ford , Bakken, Niobrara. There acreage fetching anywhere between $200 to 50,000 per acre the mind boggles. Of course all these plays have good infrastructure and yet in saying that WTI is discounted upto10 to 15% of Brent crude price , and then there is a further discount from most of these plays to WTI Price, add to that gas at a very low market price.
Australias price would be at least closer to the Brent crude price and our gas is 2 to 3 times higher than US. So you dont need to be too smart to see what would follow. Rayz post on Petro china highlights this very well.
Even a modest result would be a great result in the sense that the knowledge gained from these first 3 test wells so to speak, would be immense in more fully understanding the play and how to improve it.
Ecciting stuff.
LWR
BKP Price at posting:
1.5¢ Sentiment: Buy Disclosure: Held
