In low oil price environment, big players used to park their projects for later exploration while It makes more sense to buy gas from third parties, example: BPT
But for those who have bigger pictures they will take the advantages of lower rig/service contract prices.
I am not sure that ORG has been using the most advanced rig from Ausdrill which is one out of 5 in the world but I am pretty sure SXY and ORG will use this USD$25m rig for their ongoing exploration in july 2015.
In my belief, Shale/Tight is the runner-up following CSG industry for 3-5yrs. ORG's exploration in NT gave me more confidence about this next revolution.
If you have a look at gas pipelines you will notice that Gov. has been proposed to build 2 connection pipelines from NT to SA and NSW.
Ichthys is building its gas processing close to the coast of NT.
Recently there was one Japanese company who acquired some permits in NT.
Other mineral companies said that they found oil came out from their wells. It sounded like a farmer could drill a well in its backyard in Texas.
All those things make NT becoming a very attractive place to invest.
Statoil has stalled its Beetaloo project due to one of its J.V.s Baraka was in insolvency early 2015. Statoil didn't flow gas to surface because It hadn't got the luxury to flare the gas.
ORG is one of key players in QC-LNG so there's no surprise to see the 90 days flow test products to supply to the CSG ramps up.
The best thing to see its capabilities to store gas in VIC when gas is cheap and to sell to export market when gas is expensive. Cheaper gas will see all its generators to run flat out rather than to flare the gas at the gas fields. that's a big advantage for this company.
If someone puts a query about Beetaloo's commercial viability due to the lack of infrastructure one must understand the way ORG is operating its gas business.
There's a good reason to hide in its big wings while other juniors often rely on their JV to make business decisions.
ORG Price at posting:
$11.75 Sentiment: Buy Disclosure: Not Held
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