the path ahead, page-10

We all agree that the land position/geology and leases is the key here for NWE opposed to plays in the US, The "BIG BUT" is that our leases are worth a measly $800 an acre. In the USA the productive yet speculative lease/s sell for $15,000 per acre (generally 1 or 2 pay zones if lucky) and remember gas is flooding the market at such historically cheap prices in the USA (ratio approx.. 32/1 gas to oil).
If we prove up our first drill and all five stages are productive surely our land holding won't be a measly $800 an acre. Oil has always traded relative to gold/inflation so if the average in ground price of gold is around $15 per oz I think the way our gas assets/reserves are priced its no different. VERY undervalued.
Some other factors we should consider in my opinion
The East China Sea may have abundant hydrocarbon resources, especially natural gas, although the region is underexplored. China and Japan, the two largest energy consumers in Asia, are both interested in using natural gas from the East China Sea to meet rising domestic demand. However, unresolved territorial disputes make exploration and development of these resources difficult: more on this at //www.eia.gov/todayinenergy/detail.cfm?id=8270 and Japan closing their nuclear power plants, even though they will have no choice but to reopen some of the plants they are up for some stiff competition from anti nuclear demonstrators.
My last point is an article in 2009 * The WA government has ‘crunched the numbers’ and thinks a severe shortage is on the cards. According to an Economic Regulation Authority paper about issues in the state’s gas industry, it is likely there could be gas supply problems at various periods over the next 5-7 years. The government’s assessment is based on conservative estimates of future gas demand and growth.
So NWE'ers we have a resource/prime acreage in a stable state with stable and popular government in the best country in the world.
I wouldreally like to top up on Monday if I could afford anymore but will have to take some losses on other dogs if I was to do it. Maybe worth it though!
Cheers Goldy