MMR (ASX) Will PEP 11 be a lost opportunity

Originally posted by rogerd: ↑

Will PEP 11 be a lost opportunity
Release the results of the April Seismic to the market now
Stop treating us like mushrooms
Drill Pep 11 in 2019

Waiting until a 3D seismic survey is approved and carried out and the results collated could take us into late 2020

https://www.australianmining.com.au...k-gas-terminal-to-be-built-at-newcastle-port/

EPIK LNG terminal to be built at Newcastle Port

South Korea-based Energy Projects and Infrastructure Korea (EPIK) has signed an agreement with Port of Newcastle to develop an LNG floating storage and regasification unit (FSRU) import terminal.
The potential investment for the Newcastle LNG project is estimated to be between $US400 million ($547 million) and $US430 million.
Newcastle LNG is proposed to include a 170,000 cubic metres new-build FSRU and associated on-shore infrastructure, and potentially a shipyard, which is pending regulatory approvals.
The project is strategically placed within the Port of Newcastle to serve the New South Wales gas market where natural gas prices are higher than Asia.
“Based on our assessment of the New South Wales gas market, particularly along coastal demand regions such as Newcastle and Sydney, we are confident that by importing LNG via a new, low-cost FSRU terminal, we will be able to provide an infrastructure solution that is capable of delivering a cost-efficient source of alternative gas supplies to the region on a long-term basis,” EPIK managing director Jee Yoon said.
The company will also advance its discussions with the Port of Newcastle regarding other potential projects, including a gas-fired power plant and an LNG bunkering facility.
EPIK credited the strategic location of Port of Newcastle as one of Australia’s largest ports and a major trade and logistics hub located at the back-end of the existing gas transmission network.

Rogerd

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Rogerd,
as per announcements, the data acquired in early 2018 has been processed, and is being integrated with the existing seismic data. Any new knowledge gained or material development in understanding of the PEP11 area and offshore Sydney Basin will be advised to the market when determined. The areal impact of the 2018 ~12km² + a 50km tie-line survey is only approximately 2% of a new 500km² 3D seismic survey.

With respect to the old 'drill PEP11 now' perspective, you may recall that MMR shareholders were provided considerable information prior to the general meeting in July to consider the farmout to RL Energy. As per ASX releases, RL Energy is undertaking to acquire a new 3D seismic survey in PEP11 at the earliest possible opportunity to ensure that the next exploration well is optimally designed and located. There are many reasons why this is a preferred logical and technical exploration strategy, and these reasons have been discussed to great lengths on these pages and via other media. Your co-shareholders voted overwhelmingly to endorse the farmout to RL Energy and the acquisition of 3D seismic data to maximise future exploration success, not short term 'unsustainable' share price ramps.

With regard to LNG import into Newcastle, one should consider the effect that LNG export had on domestic gas prices in Western Australia and now on the east coast of Australia. If any potential gas produced from PEP11 only has to compete with LNG netback prices, then the commercial and core competency advantages of the PEP11 project is a no brainer.

It's highly unlikely that any commercial gas discovery in PEP11 would be produced without the benefit of 3D seismic, yet your proposed strategy of "discover gas before working out the best place to drill for it" is simply a probability disaster. There's already been one dry hole in PEP11, and now qualified industry support (RL Energy, Sacgasco) is demonstrating that the PEP11 project will greatly benefit from 3D seismic and that it's the right strategy to take.

Recycling old debates when everyone else has moved on has no benefit to anyone.