For anyone with a bit of knowledge of the business, this agreement, is an acknowledgement that the state may has missed out bigtime on the Inpex pipeline going to darwin... ie there is no way WA could get any domgas guarantee from that project, and if WPL and Chevron scramble to get their gas sales contacts in place before the Mozambique discoveries hit the LNG business, I would doubt that they would be wanting to 'lose' any production to domgas either. I hear that chevron will be buying gas to supply it's first years production form the Gorgon project as it goes way over time for first gas, so they will want to ship every molecule from first gas. The Canning Basin has the capacity to supply the domgas requirements for many decades.
Contrary to many theories, giving Buru the secuirty to develop will have a huge stimulation effect for the basin, as Buru does not all the basin, and the process to unravel the tru value of the Canning basin has only just begun. But for real explorers only, the process for proving up unconventional resources is not for the likes of OBL or KEY as there is no short cut to the quality detailed technical work that needs to be done.
I look forward to seing some more serious players getting into orback into the basin, perhaps Talisman, Murphy, BHPB, Petronas, BG, ENI or even Shell.
BRU Price at posting:
$2.75 Sentiment: LT Buy Disclosure: Held
