shale gas presentation, page-3

The potential is certainly there, however BPT have tenements that cover roughly 30% of the entire trough, and of those they range between a 40% to 90% interest. It may not sound like as much, but that interest, according to the company, equates to having a roughly 10%/15% interest in all the CSG in NSW and QLD!

It will be a long and capitally intensive process, these wells are roughly 3km underground according to the latest presentation, that's a long way and it's expensive to drill that far down, for many other smaller companies the capital cost would be a concern, but BPT have good cash flows so it's manageable.

One point of interest in the BPT presentation was on page 17:
Australian unconventional gas M&A activity has been mainly associated with Queensland coal seam methane (CSM):
More than $20 billion worth of recent CSM deals
Purchasers include BG Group, ConocoPhillips, Shell and PETRONAS
Australian unconventional gas M&A activity has lagged overseas action whilst the industry was developing technology, resources and markets


Not sure whether they are just talking up the sector to put some M&A premium into the price, but I think they see themselves as a possible target.