we can see it coming now, very fast

This is Mr Lincoln Augustus, first second cousin of Holymagiman.

Evening here in Trenchtown, and all is quiet, all is good.

And we see that all is not quiet at Metgasco but all is good. And that's how life should be, not quiet but very good.

So the Clarence Morton basin is beginning to show more and more similarities to Horseshoe Canyon in Alberta. That is good, as the fine folk in Alberta are making some really big money, and our 52 shares should soon be worth a king's ransom. Baboo thinks the 52 shares will only buy a small king's ransom, but Grandpa Moses agrees that a king is a king and there be no such thing as a small ransom. so things are looking good.

So Thornbill E01 is flowing at > 100 mcfd. This is equivalent to about 0.04PJ a year. So a hundred similar wells will produce at least 4 PJ, water free. Sounds very good to us.

"The well was designed as a SIMPLE LOW COST VERTICAL test to evaluate the potential gas productivity of the WCM in this area. A 6 hour production test was conducted which resulted in stabilised gas flows and an average flow rate over the test period of 100 mcf/d with no associated water production. No CO2 was detected using the onsite equipment during the flow test."

We assume that drilling costs for a simple verticle well would be between $100,000 - 200,000, probably tending towards the lower cost level, so we can only do the profitability figures with some degree of awe.

Now we have previously reminded you about the Horseshoe Canyon Coals in Alberta and their similarity to the Clarence Morton Basin. The Metgasco coal seam wells are flowing at rates from 100,000 scfd to 225,000 scfd, and these flow rates must be taken in context. Every well that Metgasco has drilled has free flowing gas and very little water.

These vertical wells are relatively cheap to put in, so a whole heap of verticals can be put down to get a very large total gas flow at a low cost. To understand this fully, I would refer you to

http://www.searchanddiscovery.net/documents/2010/80079waffle/ndx_waffle.pdf

so that you can fully understand the significance and what happens as a company drills more and more wells year by year in a low water gas charged environment. Multiple wells in a low water gas-charged basin put the other water filled regions to shame.


The positions of Thornbill E01, Orara E01 and Wyan E01 all point to the confirmation of the eden creek fairway as one massive DRY and SATURATED coal seam gas bearing formation.

It sure appears that Metgasco has its own Horseshoe Canyon, apart from a massive conventional gas reserve.

Blessing of the lord
MLA