The Morgan Stanley Oz_Energy_Shale_Gas_Research_June_2011...

The Morgan Stanley Oz_Energy_Shale_Gas_Research_June_2011 addresses the shale gas potential in Australia. The following extract is of interest to ADE:

"The shale gas industry in Australia today is analogous to the coal seam gas industry a few years ago. Then CSG was a ?cottage? industry populated by many small companies experimenting with production and techniques. Once technical success became apparent, a consolidation phase followed very rapidly, and within two years, US$24bn changed hands for undeveloped gas resources and today super-majors dominate Australian CSG. This could occur with shale gas too, but only after technical success is demonstrated, in our view."

ADE has the apparent 'technical success' so, do we await the consolidation phase; the inevitable takeover? Is so, at what price?

There are details on how Morgan Stanley value the shale gas resource.

I'll leave it to others to do the ADE maths...too many zeros for me to get my head around - but, it is huge!

http://www.barakaenergy.com.au/pdfs/2011-06-17-020537Morgan_Stanley_Oz_Energy_Shale_Gas_Research_June_2011.pdf