Short Term Trading Week Starting: 19 August, page-53

EXR are now 3-5 weeks out from their first drill in Mongolia where they aim to prove up their 7.6 trillion cubic feet coal seam gas target. From a starting point of $22m MC they can deliver multiples should they do this.

Richard Cottee has done it before with QGC where he took it from $20 million to a takeover at $5.7 billion over a few years. Alongside him you’ve got Stephen Keleman who was the brains behind Santos’s entry into CSG and Neil Young who’s spent 8 years in Mongolia setting up for this. It’s a dream team and they are fully funded for the drilling campaign.

GAS, GLL etc give some idea on what a good drill will do. GAS last year had a 5 bagger run when they proved up good coals/basin on their 181km2 of holdings in QLD, EXR have 28,000km2

The roadshows for EXR begin on the 4th of September covering most states and it’s likely that they will step up their PR as this will be one of the most anticipated drills of the year for any ASX junior oil and gas play. 7.6TCF in layman’s terms is about $60 billion so one hell of a target.

The coal basin which is extensive through their tenement is reasonably well known so it’s more about finding the properties of the coal and assessing commercial significance. In other parts of the basin most properties have already been proven.

IMO there’s no junior oil and gas play on the ASX that currently offers the same near term upside exposure.

It’s well worth DYOR here