this may explain the recent interest in nse, page-4

Thanks for the news 1lapse. Good finding.

Yes, Colin Barnett is in trouble with the energy problem in WA where is everything is very expensive including energy. They have huge energy resources offshore but can't get any of them on shore as energy supplies for WA. Therefore he has to find a solution.

We are missing one important point here. Especially NSE's Merlinleigh project could satisfy some part of Colin Barnett's gas ambitions before the gas resources are extracted in Canning Basin!

In NSE's Merlinleigh Project acreage, it is estimated that there should be about 1 TCF in two conventional targets (which will be drilled next year) and 33 TCF gas in place in unconventional Basin Centred Gas and Shale Gas resource plays.

The most important thing is; it is very close to gas pipeline of WA (only ~50km).

We can see from NSE's anns. that NSE management is giving a big importance to Merlinleigh Project. This is a high GCOS project (Geological Chance Of Success). We already have a very reliable data in hand from the Kennedy-1 well drilling. The prospective depth is around 1900m, which means we don't need to drill deep, and don't need super drilling rigs, much cheaper drilling costs will involve in deed.

NSE's current intention for Merlinleigh Project is to complete the seismic data acquisition in mid 2013 and to drill 1 or 2 wells in next year. I am very happy about that.

The seismic data set will cover targets in EP481 and focus on two of the highest ranked conventional exploration prospects (Condon and Crostella – see Appendix One) which have a potential gas in place of up to 530 bcf and 470 bcf respectively. This is about 1 TCF gas, which would be a great boost for WA gas supply resources.

It might even be brought to market much before Buru's gas in Canning Basin which would require a huge pipeline investment.


NSE has got a long way to go, its stock price does too.