Pretty sure it is AJ Lucas (AJL). See my posts on the AJL thread. Cheers Grace.
Quoted from the The Daily Reckoning.
"But looking at the number of wells required doesn't even scratch the surface. Coal gas wells need maintenance. They need geophysical studies before drilling occurs. They need modelling, engineering design, regulatory approval and operating expertise.
The scheme will require its own pipeline system too. Santos and Queensland Gas will need 805 km of new gas pipelines for their contribution to Gladstone.
There's one firm providing all of these services, and more. This is a dynamic company that we believe has all the ingredients to be on the receiving end of the coal seam gas build up. "
Anyone know who thi company will be?
Closing Price 3/6/08:
CSM companies:
AJL 6.90
AOE 3.88
BLU 0.41
BOW 0.515
BPT 1.67
ESG 0.77
ICN 0.35
MEL 1.30
MPO 1.81
OIP 0.12
ORG 15.70
PES 2.50
QGC 5.69
SGL 0.495
SHG 2.58
SXP 0.61
STO 21.77
WCL 0.73
UCG/GTL companies:
BLK 0.45
CXY 0.185
GLX 0.40
LNC 3.75
MEE 0.75 any others? some are marginal inclusions
Time for the monthly update. Close of trade prices after market rout last day 3/7/08; Interestingly prices also precede release of Garnaut draft today. Will be intersting how this influences the various values over next month...
CLOSING 3/7/08......
AJL 6.90; 5.90; -14.49
AOE 3.88; 3.05; -21.39
BLU 0.41; 0.07; -82.93
BOW 0.515; 0.34; -33.98
BPT 1.67; 1.27; -23.95
ESG 0.77; 0.60; -22.08
ICN 0.35; 0.21; -40.00
MEL 1.30; 0.90; -30.77
MPO 1.81; 1.87; 3.31
OIP 0.12; 0.13; 8.33
ORG 15.70; 16.28; 3.69
PES 2.50; 1.82; -27.20
QGC 5.69; 4.87; -14.41
SGL 0.495; 0.36; -27.27
SHG 2.58; 2.18; -15.50
SXP 0.61; 0.70; 14.75
STO 21.77; 19.81; -9.00
WCL 0.73; 0.57; -21.92
UCG/GTL companies:
BLK 0.45; 0.44; -2.22
CXY 0.185; 0.13; -29.73
GLX 0.40; 0.14; -65.00
LNC 3.75; 2.91; -22.40
MEE 0.75; 0.68; -9.33
Giday Dukey.... referring to the Garnaut Climate Change Review....ie, The implications of his recommended carbon-trading regime on CSG players should become clearer once the 500 page report is digested...., particularly the timetable, & treatment of energy (CSG)sector & electricity generators.
CSG sector should be a beneficiary if a progressive move to gas-fired is supported by non-issuing of free/subsidised emission permits to coal-fired generators.
How much of this is priced into CSG stocks today?
Will a more gradual phasing-in benefit some companies more than others?
The level of response of predators to Origin's "open-auction" of their CSG reserves should also come into play over the next month. Should help confirm a benchmark 2P/3P reserves price - subject of a fair bit of disparity at present.
I'm hoping for CSGers that the value inferred by the Petronas deal is confirmed....
A large contingent CSM gas resource (an upside case of 1,000 petajoules of gas in place) has been delineated at Mahalo (40% int.) and further investment in this project is warranted. The two Galilee Basin permits are prospective for both CSM and deeper conventional oil and gas. A recently completed internal assessment of the potential in-place CSM resource indicates that in excess of 35,000 petajoules of gas may possibly be trapped in the Permian aged coals underlying the 100% owned Galilee Basin permits. These projects are well located with respect to announced infrastructure developments including a number of potential LNG projects at Gladstone in Queensland and warrant an aggressive exploration program.
Some talk about this sector on CNBC at the moment...
A much nicer 'greenday' for most CSGers today, but my mate QGC getting caned down towards 4.50 for some reason... despite what is looking like a very cheap t/o of Roma and their coveted pl171....
very strange... any ideas there folks?
Darwin (Platts)--17Jul2008
Osaka Gas is interested in coal seam gas as a potential source of LNG,
Shinichi Tada, managing director of the Japanese utility's Australian
subsidiary, said Thursday.
"We are interested in any opportunities [for our upstream business], coal seam gas is one possibility," Tada said at the South East Asia Australia Offshore Conference in the northern Australian city of Darwin.
Tada declined to specify which project the company might be eyeing, but mentioned a current tender, an apparent reference to Origin Energy's calls for expressions of interest in its coal seam gas reserves in the northeastern Australia state of Queensland.
The Australian coal seam gas sector has been a hotbed of corporate
activity in recent months, with a series of deals involving international
majors buying into the extensive reserves held by a number of smaller local
players with a view to developing LNG projects.
On May 29, Malaysia's Petronas agreed to pay $2.508 billion for a 40%
stake in Santos' planned coal seam gas-based LNG project in the eastern port
city of Gladstone and, in early June, Shell agreed to pay A$776 million ($759
million) for a 30% stake in Arrow Energy's Queensland coal seam gas reserves.
Origin Energy earlier this month rejected a hostile A$13.7 billion
takeover offer from UK-based BG Group, citing the landmark Petronas-Santos
deal, which it said set a higher benchmark price for its Queensland coal seam
gas assets.
BG's tilt at Origin is designed to access coal seam gas to supply its
proposed A$8 billion Curtis LNG project in Gladstone, which it is pursuing
with local coal seam gas producer Queensland Gas Company.
Subsequent to rebuffing BG, Origin invited proposals, with a bidding
deadline of July 4, from potential partners to help it develop its coal seam
gas reserves. BP, ExxonMobil, Chevron and Petronas were among the oil and gas companies reported to have cast their eyes over Origin's holdings.
Osaka Gas buys 7.3 million mt/year of LNG from 10 countries.
QUEENSLAND has struck yet another bonanza with the discovery of an enormous reservoir of zero-emission coal seam gas, 100km east of the outback town of Cloncurry.
Premier Anna Bligh said the Millungera Basin discovery - which is 300km long and up to 50km wide - was "one of the most exciting resource finds this century'', which could hold clean energy sources for enough low emissions power for the entire northwest region of the state.
"Other rocks of this age in other basins have significant coal seam gas and water resources, and the granites uncovered signal the potential for new sources of geothermal energy that have the potential to generate one-fifth of Australia's total electricity needs over the next 25 years without producing any carbon dioxide emissions,'' Ms Bligh said.
Geologists discovered the new basin, which is believed to be up to 540 million years old, underneath the younger Carpentaria Basin. Further surveys will be conducted to find out the size, shape and depth of the basin in addition to drilling to assess the geothermal potential of the site.
The Government will soon decide which blocks of land will be released for tender for geothermal and gas exploration.
Anyone have any idea why CSM stocks are plummeting at the moment? For example, Arrow recently announced an increase in their 2P reserves of 81% followed a few days later by an announcement of better than expected flow rates from the Taroom Coals. Sounds like good news to me, but what happens? The SP drops from around $3.30 to $2.90. What's going on?
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