# The CSM Thread! (Coal Seam Methane)



## chops_a_must

Coal Seam Methane, Coal Bed Methane, Cow Bed Methane, whatever you call it, here it is.

And it's surprising really, considering that this sector has done really well, that no-one has bothered to devote a thread to it, or the stocks involved in the sector. I for one think this year will be a very good year for CSM stocks as transitional energy sources will be in focus for obvious reasons.

A few weeks back I was hoping to do this, a comparison between CSM stocks on the ASX. Alas, I haven't had the time and MEL sort of beat me to it. For starters, I'm just going to list the CSM stocks that I know of, with their market caps as of the 2/4/07. And over the next few weeks I will attempt to find out the 1P, 2P and 3P reserves each have (along with reserve targets), so we can then compare and rate. Feel free to add in any information or other stocks, it would be appreciated.

Cheers.

AOE - 973m
EIV - 41m
ESG - 127m
MEL - 101m
MPO - 58m
QGC - 1,127m
SGL - 126m
SHG - 109m
WCL - N/A
WGP - 4m

AOE still looks WAAAAY undervalued in comparison to QGC after the reserve upgrade...


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## Dukey

*Re: The CSM Thread!*

Whats your current favourite chops... AOE ??
I'm looking at which of these to invest in next. Guess I'll pick maybe 2 out of those listed.  I've noticed SHG - which has been off my radar - has jumped a few cents today on news of good permeability in it's latest 'lacerta' drilling - after a big jump earlier in the month.  Up from 37 to 53 ish cents this month!! would've been nice to be in on that.
MEL on the boil last week - looks good.
ESG looks like it could go anytime soon.

I guess the other consideration is potential M/A action in this sector.

----------
PS. ... Where's the CHEESE??!!


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## Dukey

*Re: The CSM Thread!*

Just notice WGP in a trading halt this morning - I've never heard about this mod before today!!

May have something to do with recent announcement of 'small oil show' in their kentucky well which was to logged and reported.....??   In fact their trading halt announcement clearly states that it IS in regards to the kentucky well oil show.


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## chops_a_must

*Re: The CSM Thread!*



Dukey said:


> Whats your current favourite chops... AOE ??
> I'm looking at which of these to invest in next. Guess I'll pick maybe 2 out of those listed.  I've noticed SHG - which has been off my radar - has jumped a few cents today on news of good permeability in it's latest 'lacerta' drilling - after a big jump earlier in the month.  Up from 37 to 53 ish cents this month!! would've been nice to be in on that.
> MEL on the boil last week - looks good.
> ESG looks like it could go anytime soon.
> 
> I guess the other consideration is potential M/A action in this sector.
> 
> ----------
> PS. ... Where's the CHEESE??!!




I don't know what the potential reserves are for SHG, but they look to be one of the more overvalued on the list relative to certified reserves. However, a large part of their cap I think has to do with the acreage they have been granted in the north sea. And they look to be in production for CSM by the end of the year (I think).

Yeah, I think AOE has the best growth prospects with exposure both in Australia and overseas. To me, MEL still looks to be rather undervalued on reserves (and was the reason I bought into them), but it might not have the high impact of overseas results that AOE will bring.

ESG will likely trade in a range for the next few months as new certification will take a while. But if they get anywhere near close to what they are expecting, it could be huge.

At the moment holding AOE, MEL, ESG (as the high risk play) and QGC (for some unknown reason). But AOE looks the most secure out of the lot of them I think, and could become an enormous company.

Lol.

WGP - Yeah, I noticed that one last night. It is tiny, so any positive news might send it skyrocketing. Watching it closely for a potential short term trade.


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## chops_a_must

*Re: The CSM Thread!*

Interesting developments for MEL and MPO:



> METGASCO EXPANDS CLARENCE MORETON BASIN
> ACREAGE FURTHER
> Metgasco (ASX:MEL) advises that it has expanded its interests in the Clarence Moreton Basin by farming in to PEL 426 and expanding our existing interests in PEL 13 to include conventional oil and gas rights.
> 
> Metgasco will operate and initially earn a 50% interest in the coalbed methane (CBM) and conventional hydrocarbon rights in PEL 426, currently held by Molopo (ASX: MPO) by funding an agreed work programme. This will involve drilling one new dual target exploration well and acquisition of new seismic and reprocessing of existing seismic over two identified highly prospective conventional hydrocarbon structures. Once Metgasco has earned 50%, by spending up to $500,000, if both parties mutually agree, Metgasco may increase its interest to 75% by spending a further $250,000 in PEL 426 on additional drilling or new seismic as agreed.
> 
> In PEL 13 Metgasco has farmed in to the conventional hydrocarbon interests held by Molopo. Metgasco intends to earn up to 50% interest by undertaking a mutually agreed work programme with an expenditure of $300,000. Metgasco is currently completing a CBM programme for the right to earn up to 75% in the CBM interests in PEL 13.
> 
> PEL 426 and PEL 13 cover an area of approximately 3,450 km² and 1,200 km² respectively. Despite exploration dating back to the 1960’s, the Clarence Moreton basin remains under explored and has the potential to host both coal seam gas and conventional hydrocarbon accumulations, with earlier exploration identifying a number of structures, which are as yet untested.
> 
> Metgasco’s Managing Director, David Johnson said “We are very pleased to be expanding our acreage further in the Clarence Moreton basin. We consider the
> conventional and CBM prospectivity to be very exciting in certain areas of this acreage. We are also delighted to be working more closely with Molopo in these new project areas.”




Looks good for both parties, perhaps moreso for MEL, but it frees up some cash for MPO to develop its own areas of interest.


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## chops_a_must

*Re: The CSM Thread!*

News regarding AOE:



> Arrow leverages bigger farm-out terms
> 
> Tuesday, 10 April 2007
> 
> FOLLOWING a recent upgrade to its coal seam methane reserves, Arrow Energy has revised the terms of a farm-out agreement with Swedish energy company Energy Infrastructure Group AB. Arrow will now keep a higher stake in its assets while increasing bonus payments for reserves certification milestones.
> 
> At the end of February, Arrow signed a letter of intent with EIG in which the companies agreed to fast-track the development of several assets by agreeing to share the interest 50:50.
> 
> But under the revised LOI, Arrow said EIG would now take a 30% stake in the Daandine power generation project.
> 
> This follows a major boost to reserves at Daandine by 221 petajoules, a rise from 25PJ to 246PJ, late last month. The increase saw Arrow's total net 2P reserves jump from 498PJ to 719PJ.
> 
> Despite the lower Daandine interest, EIG will continue to keep a 50% stake in the other assets subject to the farm-in deal, namely blocks in the Clarence-Moreton and Coastal Queensland basins, and the Dundee project.
> 
> Also, the milestone bonus payments have been increased from $75 million to $115 million. These payments will see EIG pay Arrow $30 million each time it achieves certification of 250PJ, 500 PJ and 750PJ of gross proven and probable gas reserves on the portfolio. It will also make a fourth milestone payment of $25 million for achieving 250PJ of 2P reserves on PL230.
> 
> As per the original agreement, EIG will contribute $150 million to exploration, appraisal and potentially development work, and will pay Arrow all of its costs spent on the assets since March last year.
> 
> Arrow said it expects to close the deal before the end of this month.
> 
> EIG is a privately owned energy asset holding company based in Sweden with energy development subsidiaries active in the Asia-Pacific.




Looks fantastic. And as I said elsewhere, looks like it is putting upward pressure on other CSM stocks. QGC and MEL in particular.

MEL now on a definite potential breakout watch. Very little stopping it getting to 1.20. Volume looks very good.




EDIT: 1.05 has now been taken.

And also, a nice little article about the CSM boom:



> Qld Govt talks up CSM boom
> Wednesday, 4 April 2007
> 
> QUEENSLAND'S Energy Minister Geoff Wilson has hailed the state's 13% gas scheme a success, saying it has helped spark more than $1 billion of coal seam methane development since the year 2000.
> 
> "The scheme and its requirements for gas-fired generation has been the foundation of Queensland's mushrooming coal seam gas industry," Wilson said.
> 
> Now in its third year, the gas scheme requires retailers and other liable parties to source 13% of the electricity they sell or use in Queensland from gas-fired generation.
> 
> "In 2000, when the scheme was announced, coal seam gas was supplying around 2 petajoules of gas a year, or around 2% of Queensland's gas requirements," Wilson said during a visit to Origin Energy's Spring Gully CSM project near Roma.
> 
> "Now, in 2007, coal seam gas will supply about half, or around 60PJ, of Queensland's gas."
> 
> This is expected to increase to 70% by 2010, he said.
> 
> Wilson said the CSM sector was expected to receive ongoing investment of $160 million per year, with most of that earmarked for regional areas.
> 
> He added that the scheme was also expected to reduce the growth of Queensland's greenhouse gas emissions by approximately 26 million tonnes over the 15-year life of the scheme.
> 
> "When the scheme was announced in 2000, Queensland's gas-fired generating capacity was about 900MW," he said.
> 
> "The commissioning in 2006 of the 450MW Braemar Power Station, west of Dalby, brought Queensland's gas-fired power station capacity to over 2000MW and there is at least as much gas-fired generating capacity under development or under consideration in Queensland."




Looks to be plenty of growth prospects in the sector for a while to come yet.

Cheers,
Chops.


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## Dukey

*Re: The CSM Thread!*

Does sound great doesn't it.
I sold a parcel of QGC on todays rise - so AOE and MEL will both be on my shopping list. Just wish to hell I jumped on AOE earlier. They've gone so hard recently its scary now - but it's hard to see anything but more of the same from here....
CSM sector has been so good for so long now.... I keep thinking the bubble must burst sooner or later - but I can't for the life of me find a reason why it should.
And green(ish) to boot.
Roll on CSM


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## chops_a_must

*Re: The CSM Thread!*



Dukey said:


> Does sound great doesn't it.
> I sold a parcel of QGC on todays rise - so AOE and MEL will both be on my shopping list. Just wish to hell I jumped on AOE earlier. They've gone so hard recently its scary now - but it's hard to see anything but more of the same from here....
> CSM sector has been so good for so long now.... I keep thinking the bubble must burst sooner or later - but I can't for the life of me find a reason why it should.
> And green(ish) to boot.
> Roll on CSM



AOE's prospects look fantastic and they seem to be positioning themselves to become a giant of a company. Although I have no idea as to what value they should be as of yet. I think the safest way to go is to avoid the CSM producers that only have fields in Queensland; the margins are too small. I can't see the CSM bubble bursting just yet. The fundamentals are too strong and most importantly, the cash earning potential is current and huge. Cheap to produce, close to existing infrastructure, in an environment where everyone is so conscious of clean energy, makes CSM a definite growth industry going forward.

QGC is an interesting one. Insto's and directors sell, and then it breaks out at the end of a failed buy-back. It makes me want to say in a Bender voice, "Funny, funny ... stuff ..."




I see it as a huge positive for QGC that the buy back failed. It was a silly idea, and was giving the company away at a discount. And obviously I'm not the only one that feels that way. Heads really should roll because of it. 

But now, is it breaking out? Or is it a false break? It may need some consolidation.


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## chops_a_must

*Re: The CSM Thread!*

As Bjork says, "It's Oh So Quiet!! SHHHHH! SHHHHHH!"

ESG with a monumental breakout today.

Done some basic P/E numbers on it. And it might be worth reading if you are an MPO lover.

SIGNED current contracts = 1.5 billion $ over ~ 20 years.

With a current market cap of about ~140m, it has a forward looking P/E with the current cap at less than 2.

The reserves should be sured up for this by the end of the year with deilvery next. May need to dilute, but they only need to get a fifth of what they are going for this year, to fulfill that contract  . Crazy stuff. No brainer for me. Maybe results on the way, to drive the breakout? Maybe something else?

MEL had a price spike Tuesday, on a very narrow range, following a hammer on Friday. And tonight it released fantastic drill results. Here's a taste:



> Corella-E5
> (Metgasco 85%, CS Energy earning 15%)
> Location:
> PEL 16, Stratheden Joint Venture Area
> Objective:
> Coring and associated testing of the Walloon coal measures. This is one of up to ten core wells being undertaken for the Company’s joint venture with CS Energy. The goal of the joint venture drilling program is to establish up to 540 PJ in 2P gas reserves.
> Spud Date:
> 19 February 2007
> Drilling Activity:
> This well has been drilled to a total depth of 791 metres. The Company has obtained 32 metres of coal core sample comprising a well developed sequence of Walloon Coal Measures. This is a significant increase in coal volume observed at this location. This well is currently suspended to allow for wireline logging and additional testing to be completed.
> 
> Corella-E1
> (Metgasco 85%, CS Energy earning 15%)
> Location:
> PEL 16, Stratheden Joint Venture Area
> Objective:
> Coring and associated testing of the Walloon coal measures. This is one of up to ten core wells being undertaken for the Company’s joint venture with CS Energy. The goal of the joint venture drilling program is to establish up to 540 PJ in 2P gas reserves.
> Spud Date:
> 27 January 2007
> Drilling Activity:
> This well has been cored to a total depth of 738 metres. A well developed sequence of Walloon Coal Measures has been obtained comprising 26.6 metres of net coal. These coals have exhibited excellent free gas shows. This well has now been logged and additional testing is currently being undertaken.
> 
> http://imagesignal.comsec.com.au/asxdata/20070418/pdf/00712460.pdf




It could go again on these results and the fact that other juniours are looking very good technically, i.e. MPO and ESG, SHG etc. Something tells me a bit of money is floating around in this area again. STO has begun making noises again about CSM.... Hmmmm. Eenee, Meenee, Mainee, Mo?


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## nizar

*Re: The CSM Thread!*

Got some ESG and AOE at the open.

AOE iv never held but saw it when it broke $1.37 and it was a buy then.
ESG a good mate of mine traded it all the way up since it broke 11c last year.

But yeh Chops thanks for alerting me to ESG, its just the type i like, at exactly the right time.


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## chops_a_must

*Re: The CSM Thread!*



chops_a_must said:


> but they only need to get a fifth of what they are going for this year, to fulfill that contract



Can not for the life of me remember where I read that. Maybe I was hallucinating?  

Niz.
Put up a chart of AOE. It's been running in a channel between the close MA (10-15 days) and the upper bollonger band. May go sideways for a week, but that's the best indicator I've found for picking it running. No signs at all of it coming down.

By the way, the results MPO released today (despite the HC crew) were absolute s***e.


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## Dukey

*Re: The CSM Thread!*

Chops - got another one for your CSM thread...

PES - Pure Energy Resources - a small cap ($16M) CSM that floated just last year.

Started a dedicated PES thread 

and here is the PES company website 

Looks like one to keep an eye on with Qld assets in the right places incl "Walloon Fairway" ; farm-ins with AOE and Tassie Assets drilling now. 

Yippee !!!!Jumpin Jack Flash - bring on the GAS !!!!!!!


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## chops_a_must

*Re: The CSM Thread!*



Dukey said:


> Chops - got another one for your CSM thread...
> 
> PES - Pure Energy Resources - a small cap ($16M) CSM that floated just last year.
> 
> Started a dedicated PES thread
> 
> and here is the PES company website
> 
> Looks like one to keep an eye on with Qld assets in the right places incl "Walloon Fairway" ; farm-ins with AOE and Tassie Assets drilling now.
> 
> Yippee !!!!Jumpin Jack Flash - bring on the GAS !!!!!!!




I had a look at that last week. It looks a nice one to trade. The only thing that worries me about it is the fields in Tas. The electricity is so cheap there, so I assume the margins wouldn't be that great. However, with a market cap that small... who cares? Lol! Chart looked very good until today. Had a really tight consolidation after a breakout and everything.


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## Dukey

*What possible pitfalls for CSM sector??*

OK - so some may have realised I'm heavily invested in the CSM sector.
Currently holding QGC; AOE; ESG and now PES. Have a couple or regular gas-oilers too - ADI, ARQ and NWE !!!  Yep - I know - terribly unbalanced portfolio!!

At the moment it's great - We are making hay while the sunshines. But I'm enough of  realist (apologies to the one and only 'Realist' of ASF ) to understand that external factors can sometimes throw a spanner in the works. I  - and maybe others - need to consider what possible pitfalls  to watch for - for the CSM sector or individual players.

Just off the top of my head - I guess thing such as:
1. General market sentiment, corrections & crashes???
2. Price of energy or Price of Oil.
3. Competition from other energy sources. Nuclear future??

Taking no1. I would think CSM may do better than most in a down market because basic energy demands will still be there - nobody's gonna stay at home with the lights off and take cold showers just because the sharemarket dropped.  
Industrial demand may fall. How much I couldn't guess.
Any ideas on that??

2. Price of Oil is an obvious factor. I don't have any particular knowledge here, but I can't imagine why POO (!) would suddenly fall significantly for any extended period given the global and middle-east situation. Additionally CSM has the advantage of a green image which has increasing govt support with global warming, etc going on.

3. Alternative energy sources??  Seems like anything significant - Nuclear, Geopthermal, Solar thermal etc - may take quite awhile to come on stream. But something to watch out for in the future.

Any other traps we should be looking out for folks??


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## Jimminy

*Re: What possible pitfalls for CSM sector??*



Dukey said:


> Currently holding QGC; AOE; ESG and now PES.
> 
> Any other traps we should be looking out for folks??




If I was you Dukey I would be a tad worried about traps in the CSM sector too - you should have done exceptionally well out of those stocks in the past few months.

But traps? No I don't think so..... Each of them are working towards (or already have) sales of gas contracts which will continue to mitigate risk on each of the plays you hold, whilst they prove up further resources.

My CSM plays are actually outperforming my uranium over the past 2 months. Over the last six months they are about even. CSM is a good sector to be investing in imo. You, Chops and I have at least worked that much out.


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## Col Lector

*Re: The CSM Thread!*

Greetings CSMsters, my first visit to this thread but have been interested in CSG sector for a while. Bought into AJL while in a trough last year.....established CSG drilling operator/pipeline construction with a potential CSG play in NSW Gloucester basin.
Read up on PES thanks to Dukey's evident enthusiasm on this one. Looks good.
Has anyone out there any thoughts on Sapex SXP.....floated today....currently below issue price. Large SA tenement holdings...adjacent Prominent Hill & Olympic Dam..close to transport. They are selling it as the next Cooper basin. Targetting inground coal-gasification + coal+CSG + oil/gas.
Was struck by the minimal info provided by website etc though.....a major contrast to PES's detailed/professional data/presentation.


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## Smurf1976

*Re: What possible pitfalls for CSM sector??*



Dukey said:


> Just off the top of my head - I guess thing such as:
> 1. General market sentiment, corrections & crashes???
> 2. Price of energy or Price of Oil.
> 3. Competition from other energy sources. Nuclear future??



4. Conventional gas reserve depletion in US, Europe, NZ etc.
5. Globalisation of gas trade due to the above.
6. Reserve dominance by Russia, Iran and Qatar limiting long term competition.
7. Moves to create a gas version of OPEC.
8. Increasing use of gas as motor fuel as oil supplies diminish (noting that world oil production has been falling since May 2005).

4 - 8 above are all absolutely long term bullish for gas prices. It could take quite a while though.


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## Dukey

*Re: The CSM Thread!*

Well CSM thread quiet since june - maybe time for some updates...
All took a hit in August - as you would expect...
now in QLD, 
QGC and AOE both recovering steadily since august correction.

AOE building partnerships with Indian/Indonesian interests.

PES - coming back after share issue seemed to halt the SP climb. Have just drilled 'dingonose1' intersectiong 15-20m coal with gas indications. Now drilling 'Duckworth1' .  Previous Tassie drilling - showed good permeability but low-mod gas content.

ESG: Proving up reserves at Bohena - looking good.

MEL: - 2P reserves up 50% in Casino area to 194 PJ.

New players - 
SPX - sp a bit above issue price (I think). Signed agreement with LINQ energy towards JV for coal gasification and Coal-to-Liquid projects in SA.  
- SPX increasing JORC coal to 1 bill tonnes inferred and CSM potential to 0.5 - 2 TCF. 

Newest kid on the block in CSM - 
ICON (ICN) energy. : Just about to drill 1 x CSM hole and 1 x conventional oil hole just south of Moonie.  Given the way Innaminka went off today (conv oil find) - Success for ICN could be interesting - though the play is not likely to be so big. 

Sector still looking good to me. 
Anyone care to comment or add other CSM-ers to the pile??


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## joelc

*Re: The CSM Thread!*



chops_a_must said:


> AOE - 973m
> EIV - 41m
> ESG - 127m
> MEL - 101m
> MPO - 58m
> QGC - 1,127m
> SGL - 126m
> SHG - 109m
> WCL - N/A
> WGP - 4m




*BUMP*

After about 90mins of compiling and looking up/through company ann's I've decided to give up for tonight. I'll work on/edit this over the weekend to fill a few more gaps, if there are any more CSM companies out there that I haven't yet added please advise!

Here's an update of market cap, sp, some p1, p2 and p3 and 06-07 earnings.

comp  --  cap  -----  sp  --  p1  --  p2  --  p3  ----  prof06-07  -----  target07-08  -----  future targets
AOE - 1,594m  -  $2.28  -  171  -  791  -  2,790  -  *??see notes* 
ESG - 259m  ---  $0.375  -  21  -  185  -  1,300
MEL - 99m  -----  $0.825    
MPO - 95.1m  ---  $0.52
QGC - 2,959m  -  $4.00
SGL - 120.76m  -  $0.30
WCL - 30.5m  ---  $0.50
WGP - 5.45m  ---  $0.071
PES -  34.5m  ---  $0.550
AJL -  194.1m  --  $3.550
LNC - 115.2m  --  $0.640


**notes*
****Market caps and share price as quoted above are from theage.com.au after market close on the 15/02/2008.
****AOE's 06-07 sales rev = 27.87m and maiden yearly profit 06-07 = 17.83m  (unsure which to go by, could someone please advise me on this)
****AJL is diversified company, not purely a CSM explorer/producer.
****LNC is tapping into the stranded coal seams with intent to produce clean liquid fuels (Jet and Diesel) via Underground Coal Gasification (UCG) clean coal technology and Coal To Liquids (CTL).


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## grace

*Re: The CSM Thread!*

Aaaagh, thought there must have been a thread on this sector.  I looked for CSG not CSM.  Anyway chops, SXP would be one to add.


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## grace

*Re: The CSM Thread!*

Chops I've got

QGC
1P  477
2P  1317
3P  3116

SHG  Sunshine GAs
1P  44
2P  469
3P  1097

SXP to drill this year (farm outs to ESG and LNC on some leases)  SXP have found a couple of billion tonne of sub-bitumous coal as a starting point.


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## joelc

Whilst trying to compile more data I found exactly what I was trying to achieve in an announcement by MEL on the 15/01/2008 titled 'Investor Presentation' there is a detailed list of CSM producers/explorers (QCG, AOE, SHG, ESG, SGL, MPO, MEL, BUL, PES) and their market cap, share price, net 1p, net 2p and net 3p etc.. located on page 18.

I know the data in the graph says 'as at 14/01/07' but to me (confirmed via a quick look back at historical share prices) thats an error and should infact be '*as at 14/01/08*'.

I wasn't sure if I'm allowed to post a picture of the table so instead I've posted the link, 

cheers.


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## grace

joelc said:


> Whilst trying to compile more data I found exactly what I was trying to achieve in an announcement by MEL on the 15/01/2008 titled 'Investor Presentation' there is a detailed list of CSM producers/explorers (QCG, AOE, SHG, ESG, SGL, MPO, MEL, BUL, PES) and their market cap, share price, net 1p, net 2p and net 3p etc.. located on page 18.
> 
> I know the data in the graph says 'as at 14/01/07' but to me (confirmed via a quick look back at historical share prices) thats an error and should infact be '*as at 14/01/08*'.
> 
> I wasn't sure if I'm allowed to post a picture of the table so instead I've posted the link,
> 
> cheers.




Just looking at some of my notes, my figures seem to differ from the report ie they should be higher.  As an example, ESG have 3P of 1300 (not zero as per that investor presentation).  Looks like we might have to do it the hard way.


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## nioka

Not a mention of MOS. One of the juniors but one that has ownership of infrastructure, gas wells and good lease areas. Floundering along for ages now. Will it come good? Any suggestions why it hasn't performed better?


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## Col Lector

*Re: The CSM Thread!*



grace said:


> Chops I've got
> 
> QGC
> 1P  477
> 2P  1317
> 3P  3116
> 
> SHG  Sunshine GAs
> 1P  44
> 2P  469
> 3P  1097
> 
> SXP to drill this year (farm outs to ESG and LNC on some leases)  SXP have found a couple of billion tonne of sub-bitumous coal as a starting point.




Hello Grace , BPT's CSM assets are worth consideration....in particular BPT has 40% of the advanced Tipton West JV with AOE where production is growing strongly.  From Quarterly to Dec 31 07.....



> Tipton West Reserve Upgrade
> On 16 January 2008, the results of a review of Tipton West reserves by
> Netherland, Sewell & Associates Inc (“NSAI”) were announced. This review
> resulted in Proved reserves increasing by 570% to 167 PJ and Proved and
> Probable reserves increasing by 68% to 293 PJ. These reserve increases have arisen from the results of development drilling and field production
> performance.
> 
> Net to Beach Share(40%)
> PJ mmboe
> 1P 67 11.5
> 2P 117 20.2
> 3P 926 159.3



Reserves relate to the 40%BPT has  in Dalby Block ATP683P & PL198 with AOE.
Beyond this, BPT has option to earn 40% in adjoining ATP683 Dalby South & also ATP689. (All with AOE I think).
Further north has option to earn 50% in ATP768P (Champagne Ck/taroom) that SHG is involved in.

I hold BPT as a diversified energy-play. 
More recently am becoming very interested in developments in the NSW CSM sector. Overshadowed by QLD activity to date, but ripe for both expansion & M&A as the electricity privatisation unfolds.
Hold AJL as my preferred CSM exposure but have added some SGL <$0.30 & MPO < $0.50 as I think their association with AJL will benefit hugely all. SGL's Merriwa project has huge reserve potential & is very complementary to AJL/MPO Gloucester project.
IMO AJL's mastery of the preferred SIS (In Seam) drilling technique is a key to unlocking SGL's huge landholding, and probably the only way SGL will get the big $incentives on offer from AGL($40+mill) if reserves targets are met within the next year.


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## joelc

21 February 2008 

Epic Energy has awarded Nacap Australia the contract to construct the Queensland to South Australia/New South Wales Link (QSN Link).

'The construction of the QSN Link will facilitate the supply of long term, competitively priced coal seam gas to southern markets. '

Article link; http://www.ppo.com.au/view_article.php?ArticleID=10584


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## Bushman

One that I have held for awhile now is EPG. I have attached the latest Oil Barrell write up here:

From http://www.oilbarrel.com/home.html hot off the press ...
----------------------------------------------

"Like Afren, European Gas Limited has also seen big changes since its last appearance at an oilbarrel.com event some 12 months ago (although not, alas, in the share price). The ASX-listed company has not only consolidated its hold on its coal bed methane projects in France through the acquisition of its former partner Heritage Petroleum but it has also extended its asset base with the award of the Lons le Saunier permit and added production to the books through the �26.2 million acquisition of Gazonor, owner of the Nord Pas de Calais coal mine methane project. 

This is a project with immediate benefit (production is always nice to have on the books and last year the CMM generated revenues of �8 million), medium-term development opportunities (through operational efficiencies and new drilling), longer term upside (by exploring the coal bed methane possibilities) and even longer term gas storage and CO2 sequestration activities. 

For now, the company is looking to use the gas to supply electricity - the methane gets a premium �energie de recuperation� tariff of �80 per MW hour - to drill additional drainage holes and strip out inefficiencies. �This was a low priority asset for CdF [the former owner] and that�s the opportunity for us,� said MD Tony McClure. �They were in exit mode and little was done in terms of capital investment.� He expects to double revenues over the next 18 months just by �looking at the cost side and moving about 20 per cent of the production over to electricity generation, without doing much production enhancement work�. 

Longer term, the real interest here lies in the CBM potential. Some 2.5 billion tonnes of coal were extracted from this historical coal mining region, which is only about 10 per cent of the in situ coal, leaving plenty of CBM potential. �CBM is the principal target here,� said McClure. �This project�s CBM potential is up there with the size of our Lorraine project.


Lorraine is the company�s most advanced CBM project, with plans to target about 1 tcf of gas in the first phase of development. Progress here has, as McClure acknowledged in response to a delegate�s question, been slow. �It�s been through a lot more science than we envisaged and we�ve spent a lot more money using North American labs and experts,� he explained. �Rig availability has also been a constraining factor. We�re okay for rigs for the next six months but it�s going to get very tight after that.� (The French government is apparently planning to use 20 rigs on a nuclear energy-related project: McClure noted there aren�t even 20 rigs in France.) 

Progress may have been slow but it has been promising. The results from initial test wells have been encouraging, encountering coal thicknesses and gas contents significantly higher than anticipated. The Folschviller-1 well, for example, encountered four major packets of 10 to 15 metres each, which may not rival the 25 to 40 metre coal packets in the prolific Powder River Basin in Wyoming but does eclipse the coals in Australia. A pilot production test in now underway using lateral completions to counter the low permeability coals and the company is expecting production of between 1 and 2 million cubic feet per day per well. The longer term potential here is significant: this could be a possible 200-well operation at which point Lorraine could be producing between five and ten per cent of France�s domestic gas needs."
---------------------------------------------------

The 31p oilbarrrel presentation can be viewed at http://www.ob-data.com/conference/feb08/europeangas.pdf


----------



## james99

Joelc

Just a wee caution about the reserves comparisions in annual reports, eg on page 17 /18 of the Metgasco report to which you refer. To take the example of Molopo (MPO), which I follow closely and disclose holdings in, Metgasco reports MPO's resources as 1p 11, 2p 97 and 3p 283.

Whereas MPO has potentially over 1500 pj recoverable within Australia, plus further resources (to be quantified) in China, Canada and South Africa, and over $30 mil cash for exploration. I consider it undervalued relative to its peers. 

That said, there are several excellent alternative companies, a couple of which I see are mentioned in this thread, and, to an extent, the choice is a matter of personal preference.

Pure reserves comparisons of course do not (and I appreciate you will be aware of this) take account of the ability of management, ease of commercialisation (which will be very tricky for some; hence the value of companies, or partnerships with established producers or engineers, eg such as SGL and AJL) etc. Finally, there is much in certification (as with all things) and some certifications are more reliable than others ... hence important to check the management's and certifiers reputation.

Cheers.


----------



## KIWIKARLOS

Have any of you guys ever looked into MAE ?
I've been following it for 18motnhs now went from 60c last year to a high of $1.80 and looked to have good support at $1.00. I think they even got a pretty big investing bank to buy heaps at 90 c.
operations based in Utah in the US from what I understand their reserves are about
1p: not sure but if any is low.
2p:250-300 
3P1000+

Certainly not QGC but they reckon they are going to release good flow rates and production from their first 8 or so wells. Also been seeing some unusual trading in the last couple weeks. About 10-15 very small parcel trades happen throughout the day often in quick procession and they always seem to be selling low to try push down the price? Often there are also stacked large buy orders. Anyone seen trading like this before? I thought it might just be some computer working short term trends.


----------



## jtb

Couldn't find a Roma thread but I've been watching this for a while and may be worth a look?
Hard to value this CSM thing but they've got oil revenue also.


----------



## grace

Nice bit of media coverage on both Queensland Gas and Linc Energy in the "centrefold" of the Courier Mail yesterday.  Two pages, plus lots of pictures.  Quite a good read.  QGC target 1000 wells (currently 239).

Linc believes a $700million plant 20kms from Chinchilla could produce 20 000 barrels of fuel a day (when built).

Ms Bligh said the region is expected to create another 16 000 full-time jobs by 2030.


----------



## grace

wow, glad my porfolio is loaded up with csgers!  The last few days have been good, and then the BG offer for Origin has resparked the flames!

ABC 7.30 report last night was also very interesting with mention of reliance on gas and coal going forward (as opposed to oil)....


----------



## grace

A story on Friday nights 7.30 report.  I was at this day, and Richard Cottee, had had quite a few drinks in my opinion.  He's allowed, he has good reason to celebrate!

http://www.abc.net.au/7.30/content/2007/s2233048.htm


----------



## Dukey

G'day all

I guess everyone in the Coal seam gas and now the UCG/GTL sectors must be pretty happy with the gains over the last 2 months!!!

Just for comparison - a few results since mid march - when things seemed to start jumping/

AOE  up ~ 80%
QGC up ~ 100%
SHG up ~ 100%
PES up ~ 150%
SXP up ~ 190%
ICN up ~ 200%
BOW up ~ 50%
MEL up ~ 25%
MPO up ~ 60%
ESG up ~ 100%
SGL up ~ 68%
AJL up ~ 60%

UCG/GTL  companies:

LNC up ~ 275% !!!
MEE up ~ 130%
CXY up ~ 150%

Have been wondering today if the bigger CSG players  (QGC/AOE and the like) might be looking at the up-coming UCG companies and rubbing their hands together for a tilt at a take-over?? 
Seems to make perfect sense to me, for the big players with big acreages, to try to get the most out of their deep coal holdings.
BUT - I'm not sure if it's feasible to extract CSG first then come back and go for the UCG. 

Does anyone know - do they need different or particular types of coal? or will UCG processes work in any coal beds. ... any ideas...??? 

g'luck all - Dukey


----------



## grace

Here is a bit of info on the capital expenditure of csg vs offshore gas.  One can see the big advantage of csg as the capex is about 1/4 of offshore. 

Also, a very healthy tax differential  (offshore 40%, onshore 10%).  Perhaps Anna will get her knife out soon though, like she did to coal!

http://www.businessspectator.com.au/bs.nsf/Article/Gas-rises-on-demand-F953F?OpenDocument

I still wonder why WPL hasn't ventured into csg???


----------



## james99

Dukey: CSM gas requires a reasonably specific composition / geological structure of coal; which fortunately is widespread in Queensland (and US / India / China / Pakistan etc). I think AOE has the most of it in Queenland (hence no doubt Shell's interest); and Orion the most in Au, but it is difficult to really be sure given the new reserves estimates of various companies. It is far easier to extract than UGC and is proven technology. It requires less precision than oil well drilling.

UGC has, as I understand it, less specific requirements and thus could be used in more places (ie including the same international places), but the technology is more complex. It is used overseas but really needs a few technological advances to make it more efficient and less environmentally unfriendly (hence Mee / Cxy / CSIRO efforts). It also requires more effort to lead to production.

There is, from a government report I read about 2002 - 2004, about 100,000 pj of suitable coal for both in Au (and probably far more 1, 2 and 3 p since then) so both will have sufficient reserves for many many years. 

Not sure of how effective trying to use ex CSM coal for UCG is. I would be interested in any reply.

I disclose holdings in AOE and CXY.


----------



## Col Lector

Building on Dukey's post above, thought be interesting to keep a eye on the performance of the CSM stable over the following month(s). A few early bolters but how will the field respond as the race unfolds beyond the Closing Price 3/6/08:
CSM companies:[/:
AJL 6.90
AOE 3.88
BOW 0.515
BPT 1.67
ESG 0.77
ICN 0.35
MEL 1.30
MPO 1.81
ORG 15.70
PES 2.50
QGC 5.69
SGL 0.495
SHG 2.58
SXP 0.61
STO 21.77    any others? some are marginal inclusions

UCG/GTL companies:
BLK 0.45
CXY 0.185
GLX 0.40
LNC 3.75
MEE 0.75


----------



## rogue_investor

You can add:

BLU - 0.41 nice gains this week
OIP - 0.12 ESG spin off looking for a piece of CSG as well as oil.


----------



## Col Lector

Roger, Rogue. Adjusted. Are they your fav. CSM picks??

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


----------



## grace

Thought I would post this here as well, seeing quite a few csg stocks are involved.  Seems Mathews Fund is a great believer in the csg story.

http://www.businessspectator.com.au/bs.nsf/Article/Secret-billionaire-FB36Z?OpenDocument


----------



## Col Lector

Thanks Grace. Been wondering about Matthews...some really astute buying.Not mentioned in the BS article is that they also hold over 12%of BPT worth some $180 mill.
Emailed Kohler with these details.


----------



## rogue_investor

Col, Col,

I like the look of both OIP and BLU..own them both.  Both good location and potential reserves.  OIP has cash.. was a disappointing first Well but more to come and at this price have upside.

Have owned SXP and AOE and sold at profit.. would have been my favs if hadn't sold so cheap 

Definite fav is now BOW.  They have proven CSG and more wells to come.  Should be over $1 shortly.

great thread guys!!  thanks for the list


----------



## Dukey

james99 said:


> Dukey: CSM gas requires a reasonably specific composition / geological structure of coal; which fortunately is widespread in Queensland (and US / India / China / Pakistan etc). I think AOE has the most of it in Queenland (hence no doubt Shell's interest); and Orion the most in Au, but it is difficult to really be sure given the new reserves estimates of various companies. It is far easier to extract than UGC and is proven technology. It requires less precision than oil well drilling.
> 
> UGC has, as I understand it, less specific requirements and thus could be used in more places (ie including the same international places), but the technology is more complex. It is used overseas but really needs a few technological advances to make it more efficient and less environmentally unfriendly (hence Mee / Cxy / CSIRO efforts). It also requires more effort to lead to production.
> 
> There is, from a government report I read about 2002 - 2004, about 100,000 pj of suitable coal for both in Au (and probably far more 1, 2 and 3 p since then) so both will have sufficient reserves for many many years.
> 
> Not sure of how effective trying to use ex CSM coal for UCG is. I would be interested in any reply.
> 
> I disclose holdings in AOE and CXY.




thanks james - interesting stuff.

..... when you say Orion - do you mean *Origin* - ??  don't know of Orion and can't find em in a search!


----------



## Muschu

Hi
I suspect the question which follows is too simplistic an approach to the topic. Please tell me if this is the case.  

Is it possible to rank the major CSM players in Australia in terms of:
- Tenemant / acreage size;
- Level of proven and probable accessible reserves; and 
- Suitability of coal for CSM extraction?

As a retiree I am less interested in more speculative stocks.  That is, I'd rather invest in a more estabished CSM company which is likely to experience moderate growth than a more exploratory company which might enjoy more spectacular growth - or loss.

My impression is that ORG, AOE and QGC [STO?] might best suit my situation.

Comments, even if I am way off beam, would be appreciated.

Thanks

Rick


----------



## nioka

Muschu said:


> Hi
> As a retiree I am less interested in more speculative stocks.  That is, I'd rather invest in a more estabished CSM company which is likely to experience moderate growth than a more exploratory company which might enjoy more spectacular growth - or loss.
> 
> My impression is that ORG, AOE and QGC [STO?] might best suit my situation.
> 
> Comments, even if I am way off beam, would be appreciated.
> 
> Thanks
> 
> Rick




As a retiree and not looking too far ahead at all I am more interested in looking towards the more speculative stocks for csm. I made a good gain on buying and selling ORG and AOE, particularly AOE and I still hold some AOE. I doubt if I will make the same profit looking forward by holding AOE as I will if I can find the next AOE.


----------



## Dukey

Muschu said:


> Hi
> I suspect the question which follows is too simplistic an approach to the topic. Please tell me if this is the case.
> 
> Is it possible to rank the major CSM players in Australia in terms of:
> - Tenemant / acreage size;
> - Level of proven and probable accessible reserves; and
> - Suitability of coal for CSM extraction?
> 
> As a retiree I am less interested in more speculative stocks.  That is, I'd rather invest in a more estabished CSM company which is likely to experience moderate growth than a more exploratory company which might enjoy more spectacular growth - or loss.
> 
> My impression is that ORG, AOE and QGC [STO?] might best suit my situation.
> 
> Comments, even if I am way off beam, would be appreciated.
> 
> Thanks
> 
> Rick





- I'm interested in both speculative up & comers and established players - cause I don't want all my dosh on speculators.
Established players: for me QGC started out as a speculator at <30c  but it's now a top performing, top (mid-top??) tier CSG player.  Having come back from $6 to around $5 it might be good value and if I didn't already have plenty (>50 of my portfolio) I'd be thinking about getting some.   BUT that doesn't mean it won't come down a bit more before it goes up!!  
I havn't investigated STO much - but I'm going to. Their news about NSW CSG could see them charging along for a while.
AOE - I have some and wish I had more. Has doubled in the last 2 mnths though.

To compare companies - check out the company presentations on company websites.   from memory a presentation on the  MEL website has some comparative tables - but may not include STO or ORG. - not sure.
i think its here : http://www.metgasco.com.au/docs/601562.pdf

... EDIT - sorry not THAT one - THIS one!! NOTE - the figures are not current - comparative table near the end. http://www.metgasco.com.au/docs/552986.pdf


----------



## Muschu

Many thanks Nioka and Dukey.
Yes, the website gave comparitive tables - thanks - and did not include ORG or STO.
The tables indicated with respect to the companies listed that QGC, AOE and SHG have the biggest 1P and 2P reserves by a big margin - especially the first 2 of these companies.  
Any further info on where 
- ORG and STO fit into the picture; and
- the appropriateness [type of coal] and accessibilty of the reserves
would be welcome.
Again, the comments already offered are greatly appreciated.
Rick


----------



## Dukey

Muschu said:


> Many thanks Nioka and Dukey.
> Yes, the website gave comparitive tables - thanks - and did not include ORG or STO.
> The tables indicated with respect to the companies listed that QGC, AOE and SHG have the biggest 1P and 2P reserves by a big margin - especially the first 2 of these companies.
> Any further info on where
> - ORG and STO fit into the picture; and
> - the appropriateness [type of coal] and accessibilty of the reserves
> would be welcome.
> Again, the comments already offered are greatly appreciated.
> Rick




There is another table in a recent announcement by BLU - Blue energy (see my post in the BLU thread) - giving tenement areas - as opposed to p, pp, ppp resources - surprisingly QGC has low acreage but v. high quality tenements. (BU has big tenement areas, but unproven quality).
 STO and ORG both have bigger acreages and reserves (I think) than AOE or QGC or any one else. Though the partnerships/farm-ins are hard to work out. 
I think QGC have charged ahead bec. they hit the sweet spot in their tenements and have progressed very quickly to market - smart deals etc.  Eventually I would expect them to go hunting for more area - which may have been evident in the tilt at ORG by BG (QGC's new partner).
... so where will they go hunting next??? a question we would all like to know the answer to!!!


----------



## Muschu

Dukey said:


> There is another table in a recent announcement by BLU - Blue energy (see my post in the BLU thread) - giving tenement areas - as opposed to p, pp, ppp resources - surprisingly QGC has low acreage but v. high quality tenements. (BU has big tenement areas, but unproven quality).
> STO and ORG both have bigger acreages and reserves (I think) than AOE or QGC or any one else. Though the partnerships/farm-ins are hard to work out.
> I think QGC have charged ahead bec. they hit the sweet spot in their tenements and have progressed very quickly to market - smart deals etc.  Eventually I would expect them to go hunting for more area - which may have been evident in the tilt at ORG by BG (QGC's new partner).
> ... so where will they go hunting next??? a question we would all like to know the answer to!!!




Aahhh..  I just typed an answer to this and hit delete instead of submit!
Thanks Dukey - I checked this other link.  From that [where again STO and ORG get little mention] QGL has the largest market cap and AOE the largest area.
How to choose?
QGL for smarter management?
AOE for the potential of the area they control?
STO for diversity?
Or buy 10 shares of each and go fishing?

Thought:  Have WPL any prospect / opportunity of getting into CSM?  If it's an area of such growth are they going to leave it aside?

Thanks again.
Rick


----------



## Dukey

Muschu said:


> Aahhh..  I just typed an answer to this and hit delete instead of submit!
> Thanks Dukey - I checked this other link.  From that [where again STO and ORG get little mention] QGL has the largest market cap and AOE the largest area.
> How to choose?
> QGL for smarter management?
> AOE for the potential of the area they control?
> STO for diversity?
> Or buy 10 shares of each and go fishing?
> 
> Thought:  Have WPL any prospect / opportunity of getting into CSM?  If it's an area of such growth are they going to leave it aside?
> 
> Thanks again.
> Rick




Just realised I got the ASX code wrong for Blue energy - its BUL (not BLU - thats someone else).

- It's a tough choice - and I can't recommend anything  cause we can't do that here and  don't really know your situation.... 
but I like fishing (though the fish don't seem to like me much) - I'm trying to spread my risk over more CSG shares plus  conv gas; oil; iron; ... trouble is I'm loath to sell anything.
& of course they could all plummet for some god-forsaken 
unknowable reason and I'll buggered ...but I guess I won't be alone. 
------------------
... I hate that - when you lose a post before posting ... 

Holding: QGC, PES; AOE; BUL; CXYO; SXPO;  of the coal seamers.

Re woodside - dunno. it would seem to make sense, but maybe they are doing quite well enough from their current assets.

-dukey


----------



## Eddyl

If yoyour risk appetitie is quite conservative but you want to get into the CSG industry, I would suggest QGC.
  If you are buying a company purely on acerage, it is by nature alot more speculative. Any company could have huge tennements, with no provable resources. QGC has excellent acerage in the surat valley. Furthermore the ability to convert resources into contracts is another large consideration. You only have to look at the number of proved up tennements for certain resources which are closed because mining them is too expensive relative to their price.

  I disclose holdings in QGC.


----------



## Jimminy

Muschu said:


> Hi
> I'd rather invest in a more estabished CSM company which is likely to experience moderate growth than a more exploratory company which might enjoy more spectacular growth - or loss.
> 
> My impression is that ORG, AOE and QGC [STO?] might best suit my situation.




I think you've answered your self here.

Origin and Santos are the two first movers on CSM.

QGC and Arrow are the up and comers.

The rest have high hopes but are trailing and it is difficult to say which will be more successful than another.

But consolidation will be the next phase in the csm sector over the next 12 months. It has already begun.

I have my money in the up and comers based on their acreage. Hence I have alot tied up in ESG and BUL.

cheers.


----------



## agro

rogue_investor said:


> Col, Col,
> 
> I like the look of both OIP and *BLU*..own them both.  Both good location and potential reserves.  OIP has cash.. was a disappointing first Well but more to come and at this price have upside.
> 
> Have owned SXP and AOE and sold at profit.. would have been my favs if hadn't sold so cheap
> 
> Definite fav is now BOW.  They have proven CSG and more wells to come.  Should be over $1 shortly.
> 
> great thread guys!!  thanks for the list




don't you mean BUL - Blue Energy? 

i am holding this one too and think it has real potential

reason being - location as you said, and strategically next to some big names

have a look at their presentation..


----------



## redwynne

Im interested in this type of stock and found this thread interesting to read. Goes to show I dont know much about much!! Im still a newbie  when it comes to stocks but willing to learn.

I would like to invest in a share or two but was only wanting to spend a small amount of money (is a thousand or two small!?). I basically want to invest for my kids and forget about them (the shares that is not the kids )

I have been keeping an eye on LNC and ICN ever since I became interested in this area, which is only very recently. Can anyone give me some information about these or other CSM related shares so that I can be in a better position to decide where to invest.

Im not sure if I want shares <$1 or a few dollars so any feedback would be welcome!

Thanks 

EDIT: Have I missed this boat?


----------



## grace

This was a hint in today's Daily Reckoning.  Any ideas who the company might be?  A drilling company perhaps? A private company in Toowoomba has something like 58 drill rigs, but is not listed on the ASX (and it's not exactly on the coast!).

*



			A small town on Queensland’s coast, near the state’s massive coal basin, will soon become the backbone of the coal-seam gas industry. 

Tens of thousands of coal gas wells are in the planning stages and one Aussie company is poised to profit from all of this drilling.
		
Click to expand...


*


----------



## grace

Alan Kohler's 2P or not 2P is worth a read.  Also of note is OZ Minerals intention to get involved in coal seam gas in Queensland.  With $2billion in the bank, who is left for them to become friends with?

http://www.businessspectator.com.au/bs.nsf/Article/2P-or-not-2P-FR4PR?OpenDocument



> OZ Minerals cashed up, eyes energy prospects
> Kate Haycock
> Wednesday, 18 June 2008
> 
> THE reborn OZ Minerals could have around $A4 billion in cash and debt to spend on empire building, and is looking for energy projects such as coal seam gas.
> 
> News reports today have suggested the Oxiana and Zinifex union – which has adopted the patriotic name of OZ Minerals, to be ratified by a shareholder meeting later this month – could be looking to spend around $A4 billion on acquisitions.
> 
> Current Zinifex chief executive and soon-to-be OZ chief Andrew Michelmore told the Australian Financial Review the company could potentially add $3 billion in debt to current cash reserves of around $1.2 billion.
> 
> These funds could go towards projects in Australia and around the world.
> 
> *Michelmore also suggested the company could be looking at coal seam gas assets in Queensland *or other coal opportunities overseas, according to a report in the Australian.


----------



## grace

Thought I would post this information from Richard Cottee (MD Queensland Gas) about what to look for when investing in the industry.

1.  Gas content - need to be 3 cubic metres per tonne or higher (I think QGC range from 3 - 9 on their drilling).

2.  Permeability - measured in Millidarcies.  Average is 50 (now I didn't read that in his document, I seem to think that was average of commercial wells).  Richard mentions 10.

3.  Gas Saturation - the higher the better obviously.  High 90%'s is good.

4.  Coal depths - generally 200m to 800m depth for coal seam gas.  Gas can be up to 1000m, but must be highly permeable at these depths.  eg ESG are deep, up to 1000m, but are higly permeable, and do have seams shallower on the way down.

5.  Coal seam thickness -  one would think the thicker the better.  QGC and PES are finding good thickness, some 25 - 30 metres of seams.  However, if it is thick, but not permeable, one can get more gas out of thinner, but more permeable.  (QGC and PES drills are highly permeable so far)

6.  Type of coal - eg coking coal is high in gas, however, as it has very low permeability, it cannot be extracted in most cases.  Brown coals may be better for coal seam gas as more permeable.

7.  Just because a company has gas-in-place, does not mean you can extract it.  It can be mind boggling when looking at gas-in-place figures, but of no value if you can't get it up out of the ground.

Please feel free to add comments, or tell me if you think I am in error somewhere.

Here is Cottee's interview, and you'll find how to invest down the bottem section of the interview.

http://www.businessspectator.com.au...TERROGATION-Richard-Cottee-FS75W?OpenDocument

Sorry, just one more thing, unbelievably good gas flows are 1million cubic feet per day.  eg Berwydale South #18 initially flowed at 2.3million cubic feet per day and stabilised around 2 million!  1 million is considered fantastic in my books though.


----------



## Dukey

grace said:


> Thought I would post this information from Richard Cottee (MD Queensland Gas) about what to look for when investing in the industry.
> 
> 1.  Gas content - need to be 3 cubic metres per tonne or higher (I think QGC range from 3 - 9 on their drilling).
> 
> 2.  Permeability - measured in Millidarcies.  Average is 50 (now I didn't read that in his document, I seem to think that was average of commercial wells).  Richard mentions 10.
> 
> 3.  Gas Saturation - the higher the better obviously.  High 90%'s is good.
> 
> 4.  Coal depths - generally 200m to 800m depth for coal seam gas.  Gas can be up to 1000m, but must be highly permeable at these depths.  eg ESG are deep, up to 1000m, but are higly permeable, and do have seams shallower on the way down.
> 
> 5.  Coal seam thickness -  one would think the thicker the better.  QGC and PES are finding good thickness, some 25 - 30 metres of seams.  However, if it is thick, but not permeable, one can get more gas out of thinner, but more permeable.  (QGC and PES drills are highly permeable so far)
> 
> 6.  Type of coal - eg coking coal is high in gas, however, as it has very low permeability, it cannot be extracted in most cases.  Brown coals may be better for coal seam gas as more permeable.
> 
> 7.  Just because a company has gas-in-place, does not mean you can extract it.  It can be mind boggling when looking at gas-in-place figures, but of no value if you can't get it up out of the ground.
> 
> Please feel free to add comments, or tell me if you think I am in error somewhere.
> 
> Here is Cottee's interview, and you'll find how to invest down the bottem section of the interview.
> 
> http://www.businessspectator.com.au...TERROGATION-Richard-Cottee-FS75W?OpenDocument
> 
> Sorry, just one more thing, unbelievably good gas flows are 1million cubic feet per day.  eg Berwydale South #18 initially flowed at 2.3million cubic feet per day and stabilised around 2 million!  1 million is considered fantastic in my books though.




Great work here Grace - as it certainly can be difficult to pull together all the necessary info to assess the up and comers.... 'nearology' will only get one so far .

The aspects posted above are why we see some disparity between a companies like ICN and BUL compared to say a PES...  
Aside from being further advanced, PES has some great acreage right in the hot spots next to QGC and other proven Walloon tenements. They will be charging again soon I think.

BUL in particular has huge tenements and stated gas in place estimates - but as we saw last week they discounted large peripheral areas as 'not prospective for CSG'.  And from what I can see they lack tenements right in the guts of the Walloon hot spots - they do have some around the edges which have potential...but as yet it is still 'potential'.  Their recent holes are also confirming fairly thin coal seams compared to what QGC have, but as you've said , if it's permeable enough they can produce.
All in all I think BUL will have enough good 'hits' to do well.... but it may take longer. I expect their future may lay in making deals with existing producers in their best tenements when proven.
-all very interesting - like a giant 3D jigsaw puzzle!!!

-dukey


----------



## grace

grace said:


> 2.  Permeability - measured in Millidarcies.  Average is 50 (now I didn't read that in his document, I seem to think that was average of commercial wells).  Richard mentions 10.




Just reread, and I don't mean to mislead anyone.  Richard Cottee says that anything under 10 Millidarcies, you wouldn't touch.  How I typed it, it looks like average 10.  No, above 10 Millidarcies needed per Richard!

Crystal clear now...


----------



## Gspot

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?


----------



## grace

Gspot said:


> 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?




Pretty sure it is AJ Lucas (AJL).  See my posts on the AJL thread.  Cheers Grace.


----------



## Dukey

Wow - its a bloodbath across the board - and CSG / UCG stocks havn't been spared this time!!!

QGC and AOE both down a whack.... is it accumulation time?

LNC smashed....  why?  
- is there a problem? 
- is it just mkt sentiment? 
- did POO plummet?  
- or is it just that folks have realised (as I did not that long ago) that this trial/pilot burn will produce just 10bpd. 20000 bpd is still a fair way off - maybe not till well into 2009 from memory.  (pls correct me if I'm wrong there).


Interesting times... I'm sure demand for gas and oil ain't going to dissappear so in the long run we'll be fine... 

-dukey

(holding aoe, Qgc, bul, sxpo, cxyo, pes .... not holding LNC... yet.)


----------



## Col Lector

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...



Col Lector said:


> 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




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


----------



## Dukey

Col Lector said:


> 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




Thx Col.
... and sorry whats the 'Garnaut draft' - I've managed to not hear of it thus far...


----------



## Col Lector

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....


----------



## Dukey

Col Lector said:


> 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....




Ahh - OK - Thanks.

Yes - will be interesting to see the recommendations etc.


----------



## Wysiwyg

Comet Ridge Limited (COI) have coal methane interests in Qld and NSW.Still a long way from 1st base and there are better csm`s out there.



> 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.


----------



## YOUNG_TRADER

Hi guys,

What would be really good is instead of listing the CSM/CSG companies prices you list their market caps, resources and cash

That would allow for a really interesting comparison

Just a thought


----------



## Dukey

Here's a useful tool from the Qld Gov - web based interactive tenure mapping for petroleum leases, resources mapping etc.   I found just recently and have been checking out where some CSG tenements are in relation to others.

You need to have pop-ups allowed for the new GIS window to open.

Takes a bit to get the hang of it - I still havn't managed to search on 'lease holder name'. (looking for Roma leases).

http://www.webgis.nrm.qld.gov.au/webgis/webqmin/default.htm


----------



## chops_a_must

Some talk about this sector on CNBC at the moment...


----------



## michael_selway

chops_a_must said:


> Some talk about this sector on CNBC at the moment...




Hi are there any links?

Sounds interesting

thx

MS


----------



## Dukey

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?


----------



## chops_a_must

Dukey said:


> 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?




Complete change in strategy it looks.

God damn that company pulls some strange moves.


----------



## bassmanpete

Every day I receive an email from PetroleumNews.net that has links to some interesting articles on CSM. This one:

"No shortage of gas in Australian coal seams  

Exclusive for Premium Subscribers
AUSTRALIA’S coal seam methane boom may well be only in its early stages..."

looks particularly interesting but I'm not a Premium Subscriber. Anyone here have access to the whole article?


----------



## grace

Japanese Osaka Gas looks to be eyeing off some of Australia's coal seam gas reserves.

I suspect this is not a bubble at all.  Just some major players see the huge potential that gas will play in our long-term energy needs.



> 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.


----------



## grace

News just on ABC Radio Southern Qld of the discovery of a new coal seam gas basin 100 kms east of Cloncurry called the Millungery Basin.

Discovered by Qld Govt survey team.  Similar coal seam gas as that in other basins in Qld, plus geothermal potential.  Basin is 300 km long and 50 km wide.

http://www.theaustralian.news.com.au/story/0,25197,24048998-5006786,00.html



> 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.




Shall be interesting to see who ends up with the lease!



> 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.




Stay tuned.


----------



## YOUNG_TRADER

CSG article mainly on Shell, but mentions Santos and the Petronas deal


http://www.theaustralian.news.com.au...005200,00.html

"FOREIGN investors appetite for investments in coal seam gas and Australian companies with exposure to the new energy product shows no signs of slowing.

Royal Dutch Shell's global head of power and gas, Linda Cook yesterday said the super major was still looking for new CSG openings in Australia to add to its recently added stake in Arrow Energy. 

"We've had that (CSG) on our radar for some years," Ms Cook said during a visit to Australia. 

"Our interest remains high in various types of new gas opportunities including tight gas as well as coal seam gas in a number of countries around the world."


----------



## bassmanpete

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?


----------



## nioka

bassmanpete said:


> 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?





They are not all plummeting. Check out BUL. If they are going down while BUL goes up, think of the potential when the others go up. I sold AOE to buy BUL, chose it for the stock comp on the strength of my convictions after studying the fundamentals.If this deal continues along these lines then it is a triumph of F/A overT/A.


----------



## bassmanpete

Yes I've been watching BUL. It went up today after the announcement of its alliance agreement with Stanwell Corporation:

http://aspect.comsec.com.au/asxdata/20080807/pdf/00867647.pdf

Be interesting to see if it stays up or sinks back like AOE, QGC, etc. once the excitement of the announcement wears off.


----------



## grace

Well, we are all off and racing fast out of the gates this morning.

Nice bid on origin's csg assets as follows (by Cocono):

$1.88/GJ of 3P

$4.00/GJ of 2P

Each one of these bids gets better and better.

That equates to 

$1.88million per PJ of 3P

$4 million per PJ of 2P

Looking around the csg sector, there are a lot not trading anywhere near these figures.  Suggest there is plenty of growth in some of those takeover targets.  

Sunshine Gas - will be interesting to see what happens there.  Bid is low compared to what happened this morning.

Nice to see the screen green!


----------



## grace

BG must be swaring and cursing at present having origin swiped from under them. 

http://www.businessspectator.com.au...rges-even-stronger-JA4RE?OpenDocument&src=sph

BG will need more gas now........where will they look next?


----------



## grace

Interesting interview here with Origin's CEO Grant King.

There were a number of bidders for Origin's csg assets.  Also commented that those losing bidders might be looking for quality csg assets.  Origin not disclosing who the losers were........suspect we'll see more deals being done on what is left not consolidated in the sector.



> IO: It appears that Santos-Petronas is going to turn into a little bit of a benchmark. Do you think that’s a fair analysis?
> 
> GK: Well, I think that deal and the deal we’ve announced today are basically fairly consistent and so I think both of them establish a bit of a benchmark for large scale, extensive, high quality, well developed CSG assets.
> 
> IO: Good news for anyone that holds these kinds of assets?
> 
> GK: That would be right, yes, with shares in companies that hold those assets, yes, that’d be right.




http://www.businessspectator.com.au/bs.nsf/Article/Grant-King-JAUCP?OpenDocument&src=sph


----------



## grace

grace said:


> News just on ABC Radio Southern Qld of the discovery of a new coal seam gas basin 100 kms east of Cloncurry called the Millungery Basin.
> 
> Discovered by Qld Govt survey team.  Similar coal seam gas as that in other basins in Qld, plus geothermal potential.  Basin is 300 km long and 50 km wide.
> 
> http://www.theaustralian.news.com.au/story/0,25197,24048998-5006786,00.html



I wonder if anyone knows what is happening with drawing these blocks for exploration?


----------



## basilio

If the survey results are realistic then it would seem that the companies that gain tenement rights will do very very well. 

Makes you wonder why the Queensland Govt wouldn't simply set up its own company to drill and prove the reserves and then either sell them aka PES or move into a joint partnership. Or is that too socialistic ?


----------



## grace

Looks like those who have sold their PES shares are plunging the money back into anything left afloat in the coal seam gas industry.  

My next hunch for a takeover is ESG.  I know some doubt their prospects, but I like them for reasons spelt out on the ESG thread.  Yes, they are slow at proving up the reserves, but NSW has more red tape involved when it comes to drilling.  Fingers crossed, as it is my next biggest holding after Pure.


----------



## beerwm

I think the next move will be made by;

AGL/AOE or BG, they seem the hungriest.

I think ESG is more a STO-T/O prospect, But who knows when/if they'll make a move.


----------



## Nero64

Can anyone please point out the difference in the following. I read all pages of this thread and some links but still not totally sure:

1P
2P
3P

Judging by one of the links 2P is the one to use based on CSM contracts. 

thanks


----------



## kingcarmleo

1P = proved producing 90% probability of being correct
2P= proved but not yet developed 80% probability of being correct
3P= provable reserves, might or might not be producible 50% probability of being correct

contingent resource= contingent/prospective reserves- high risk 20% probability of being correct.


That being said lets have an update of the CSG players

Metgasco

1P=2.7
2P= 298
3p= 1538


----------



## pointr

Read a banking analysts report somewhere on the net today stating that the size of Chevrons latest LNG project in WA may cause a slowing of LNG projects on the East Coast and elsewhere. If their assessment is correct this may affect the valuations currently being placed on CSG reserves proposed for conversion to LNG. That said the world is still an energy hungry place. The WA projects could only have volume on their side for their economics as the cost of deepish water production and development would be high compared to drilling multiple shallow holes in a dusty outback paddock and producing water as a by product.


----------



## bassmanpete

BOW director Nicholas Mather purchased another 430,000 shares in the company today. He and Ron Prefontaine have been steadily increasing their holdings over the last 12 months or so. It appears that they're quite confident in the company's prospects.


----------



## CapnBirdseye

As you no doubt will have seen in the press, particulartly the Australian, things are hotting up in the CSM/LNG world.

Santos have a big buyer in Petronas for Queensland LNG..

http://www.bloomberg.com/apps/news?pid=20601081&sid=aI5X1ggQePcc

And have started initial planning for a new CSG to LNG scheme for gas from the Bowen and Surat Basins to service the agreement.

And Shell are extending their interests.



> Shell Australia LNG’s projected size would match the venture proposed by Origin Energy Ltd. and ConocoPhillips as the state’s largest coal-seam gas to LNG facility.




http://www.theaustralian.news.com.au/business/story/0,28124,25571302-36418,00.html



Might be a few more acquisitions soon by the big players to secure future reserves...


----------



## grace

Col Lector said:


> Roger, Rogue. Adjusted. Are they your fav. CSM picks??
> 
> 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




Kennas is about to do a stock comparison spreadsheet on this sector.  Thanks Col for this old list for a start.  Quite a few of those don't exist on the XAO any more.


----------



## rogue_investor

SORRY... formatting is a nightmare but you'll work it out.

2 observations:

1) if you held PES, QGC, SGL & SXP back when this was posted you'd probably be laughing by now.  (I haven't followed GLX or MEE)

2) for an industry that is so hot at the moment there are still a lot of opportunities when you compare the SP from 12 months ago.  I'm especially surprised by STO which is a buy on a lot of peoples radars.  Still down 25% on it's yearly high.

only BOW, ICN and ESG up on yearly highs.

I still hold BOW, ESG, OIP and BUL.


Name	                        Last/Cls	       % YTD	% 1y
BOW.AX	BOW ENERGY      	0.81	               140.84	104.19
ICN.AX	ICON ENERGY     	        0.345	               73.17	        26.79
ESG.AX	EASTERN STAR GAS	0.865	               46.96	        5.62
ORG.AX	ORIGIN ENERGY   	14.52	                -11.04	-8.93
AOE.AX	ARROW ENERGY    	3.56	                 28.36	-10.65
WCL.AX	WESTSIDE CORP   	0.52	                   8.33	-21.80
STO.AX	SANTOS          	        14.7	                   8.38	-25.90
OIP.AX	ORION PETROLEUM 	0.092	                 31.43	-26.40
CXY.AX	COUGAR ENERGY   	0.11	                112.96	-32.35
MPO.AX	MOLOPO AUST     	1.195	                 32.94	-36.87
BPT.AX	BEACH PETROLEUM 	0.825         	-14.06	-39.34
MEL.AX	METGASCO        	        0.56	                   8.55	-49.21
AJL.AX	AJ LUCAS GROUP  	2.94	                -36.97	-53.76
BLU.AX	BLUEFREEWAY     	0.036	                -21.74	-55.00
LNC.AX	LINC ENERGY     	        1.73	                -13.28	-60.23
BLK.AX	BLACKHAM RSCS   	0.145	                131.34	-69.00
PES.AX		NA		
QGC.AX		NA		
SGL.AX		NA		
SHG.AX		NA
SXP.AX		NA
GLX.AX		NA
MEE.AX		NA


----------



## rogue_investor

oops.. Blue Energy is BUL..


BUL.AX	BLUE ENERGY     	0.2	-2.38	-50.00


----------



## beerwm

There are also

COI
ECU
RAW
AGL - i think AJL sold out didnt they?

VPE - exposure through BOW's don juan.


----------



## Sean K

I've started working on a comparison spreadsheet.

Like the IO one, should have been done properly some time ago, but there's probably still some action left in the sector.

Open to suggestions on what to add in to the spreadsheet.

I'd like to put a value on each company with their current resources based on the average value per P of the recent corporate action. What averages should we use?

Also, Is GIIP the same as 3P?

I noticed YT used $1 per 1P and $2 per 2P??

I've only included 3 companies so far, the ones I hold.

MEL
ICN
WCL

Would appreciate some help adding in further companies.

Require the following info:

Company
Loc
Acerage
Shares on issue
Options
Share price
Cash
Debt
GIIP
3P
2P
1P
Comments


Cheers!


----------



## nioka

Kennas,

Can I suggest that BUL be added. BUL is an interesting one at the moment.They have just had a successful SPP and have issued shares to the large LPG Korean firm Kogas. They also have Stanwell as a large shareholder. Stanwell are power generators in Qld.

They have new management, large acreage and are starting a new drilling program.

In my opinion they are one for the future,reasonably priced too. An SP of 20c and a MC of $113M


----------



## Sean K

nioka said:


> Kennas,
> 
> Can I suggest that BUL be added. BUL is an interesting one at the moment.They have just had a successful SPP and have issued shares to the large LPG Korean firm Kogas. They also have Stanwell as a large shareholder. Stanwell are power generators in Qld.
> 
> They have new management, large acreage and are starting a new drilling program.
> 
> In my opinion they are one for the future,reasonably priced too. An SP of 20c and a MC of $113M



Cheers nioka. Can you list the company details needed above and I'll insert it. Thanks,


----------



## Mad Mel

Hi Kennas.

One of the lesser-known junior companies. Disclosure:  I hold CRM.


----------



## Sean K

Mad Mel said:


> Hi Kennas.
> 
> One of the lesser-known junior companies. Disclosure:  I hold CRM.



Thanks MM, I'll add it in.

Surprised some of the other long term CSG'ers haven't jumped in to add.

Maybe it's just due to the negative tone of the market at the moment.


----------



## beerwm

kennas said:


> Also, Is GIIP the same as 3P?
> 
> I noticed YT used $1 per 1P and $2 per 2P??




I think GIP [gas in place] is just an estimate - without drilling

1P P90 - proven
2P P50 - proven/probable
3P P10 - proven/probable/possible

inclusive - i think


----------



## Mad Mel

From my conversations with clients in the O&G industry, I think the official GIP methodology is to have a reservoir engineer throw darts at a wall covered in post-it notes with numbers on them.


----------



## Dukey

I'm with you on gas in place. there are some wild figures floating around from some companies - but recoverability is another thing altogether. Of course if the blokes next door are getting X out of the same coal seams - then that gives some idea of the recovery factor.

The other thing that seems to get forgotten I think, is how many holes will be required... BG (ex QGC) for example in the sweet spot of Walloon coals are yielding well over 1million cubic feet of gas per day (mmcfd) and over 2 Mill in some places.   Others in the bowen basin for example are struggling to reach 0.5 Mill CFD (from what I've seen),  meaning that they need 2, 3 or 4 holes to produce the same amount of gas. ( one would presume !?)
It might still be economic  - but not as good as central walloons...

...many things to consider in CSG.

see this old post in QGC thread.... https://www.aussiestockforums.com/forums/showthread.php?p=29632&highlight=mmcfd#post29632

I'll try to find time to add some bit n pieces to your file kennas.

-D


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## grace

kennas said:


> Thanks MM, I'll add it in.
> 
> Surprised some of the other long term CSG'ers haven't jumped in to add.
> 
> Maybe it's just due to the negative tone of the market at the moment.




Yes, I'm a die hard, but I'm a touch busy at present.  Hope to get to it on the w/end.


----------



## Dukey

added a little.


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## Sean K

Thanks Dukey. I've added to my master sheet.

Any idea on how to identify the value of the reserves? Do you just times the PJ by the average value of recent deals? Or, do you do compare the reserves to EV?


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## Dukey

kennas said:


> Thanks Dukey. I've added to my master sheet.
> 
> Any idea on how to identify the value of the reserves? Do you just times the PJ by the average value of recent deals? Or, do you do compare the reserves to EV?




No worries.

Value - I tend to look at $/PJ x PJ   - both 2P and 3P.
People seem to be using  $2M for 2P   and $1M for 3P at the moment.
But i'd tend to be a bit more conservative at the moment.
MEL has a good chart of recent transactions in their presentations.
- GIP figures I tend to take with a grain of salt.

For companies with little certification - might be best to go on 3P numbers - but more risk and waiting for certification involved etc.. . 

Then I'd have a look at the EV and see how it balances up, and consider other factors.    Management (obviously) and Location are important - ie in or next to good proven coal measures, near infrastructure.
Some companies are all talk and no action - I've been dissappointed with BUL on that front - but still hold a few figuring they'll hit paydirt somewhere eventually!!

gotta shot to work!

-good luck - d


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## Couchtrader

CTP has over 1 trn tonnes of coal (over 100mtrs thick seam)and have a jv with BG ( who took over qgc) yet you dont mention them With ctp drill programme to be released in july we expect 5 cbm wells drilled flow tested etc to verify CTP will have huge amounts of CBM  CT


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## Sean K

Couchtrader said:


> CTP has over 1 trn tonnes of coal (over 100mtrs thick seam)and have a jv with BG ( who took over qgc) yet you dont mention them With ctp drill programme to be released in july we expect 5 cbm wells drilled flow tested etc to verify CTP will have huge amounts of CBM  CT



Well, thanks for mentioning. Since you know them perhaps you can add in the detail we need for the spreadsheet. Cheers!! 

Require the following info:

Company
Loc
Acerage
Shares on issue
Options
Share price
Cash
Debt
GIIP
3P
2P
1P
Comments


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## happytown

Couchtrader said:


> CTP *has over 1 trn tonnes of coal* (over 100mtrs thick seam) ...




from their may ann re their 2009 drilling program



> ...
> 
> Central Petroleum Limited, (CTP) plans a robust exploration programme commencing in the second half of 2009 to build upon the successes of its 2008 programme which resulted in the *publication of an independent report that has estimated a coal “Exploration Target” potential of between 0.6-1.3 trillion tonnes* above 1,000m



having said that they have enormous tenements covering 250,000 sq kms

cheers


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## Sean K

happytown said:


> from their may ann re their 2009 drilling program
> 
> having said that they have enormous tenements covering 250,000 sq kms
> 
> cheers



Thanks for correcting that HT. 

I do hope that was just an oversight by the original poster.


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## grace

ECU  Eastern Corporation
Subsidiary is Galilee Energy (67% owned) who holds the permits in Galilee Basin.

Acreage 10000km².
100 mill shares (has just done some rights issue so that is if everyone took up offer - could be less)
sp = 28c
Max mc = $28mill
Cash $8mill
GIP 20 000PJ on ATP529 (this is not net - sorry AGL are farming in @50%)
No certification, target of 500PJ of 2P for 2010 (250PJ net to Galilee)
Also a coal miner in NZ which aledgedly is to be profitable in 2010.

Drilling fully funded for ATP529P by AGL.  Drilling program H2/09.  Rocky creek 8 drill looks interesting 
-24 metres Betts & Aramac Coal
-up to 100mD showing high permeability
-gas content 4.4m3/tonne
-97-98% methane
Rocky Creek 8 at least looks very promising on those stats......

80km from both Moomba and Brisbane pipelines.  Mr Palmer coming out to dig up some coal not too far away too.........


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## grace

BUL  Blue Energy
Shares 445 mill + 50mill oppies + 118m on spp = 613mill (however placement to Korean Gas of 10% not yet accounted for.  Korean Gas is largest LNG player in the world)
sp = 20c
MC = $123 mill
Cash = $33 mill before Korean Gas

Surat/Bowen/Galilee Basins
P50  GIP 22000PJ  (22TCF)
P10  GIP 37000PJ  (37TCF)

Gas certification due Q2/2010

Also have interests in PNG and oil in Australia.
Korean Gas have option to farm-in on ATP813P & 814P.
Is undertaking Galilee Basin pipeline study (good news also for ECU).

CSG acreage 27000km²


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## Dukey

MPO Molopo
Mix of CBM and conventional gas and oil across Oz, quebec, Sth Africa, west virginia and china!  planning to rationalise some non-core assets.

Shares  183mill + 6.3mill employee oppies  = 190 mill
sp =1.08c
MC = ~$200 mill
Cash = $120 mill in dec 08.

Bowen/Clarence Moreton Basins in Oz.
net Qld Reserves - 11PJ 1P;   48 2P ;   231 3P.  729 contingent

net Overseas reserves - 36 2P ; 118 3P.  941 contingent. 

GIIP estimates - Qld  = 3750PJ ;Sth Africa ? ;  Quebec = 35000 PJ ; China = 240 PJ 

CSG acreage 1580km² in qld.

================

Kennas - any chance of posting up the latest version when you consolidate it, so we can see how we are going! ..


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## pointr

A url to an article on 'Bloomberg' about Korea Gas and Mitsubishi looking to diversify their LNG sources, areas under consideration include Australia for CSM and Shale gas from Canada.
http://www.bloomberg.com/apps/news?pid=20601072&sid=aQys3BN2D9nA
It will be nice if MPO can develop something from their large acreage position in Canada that is being viewed as a shale play. We hold some


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## Sean K

I've updated the spreadsheet, but it's not complete. Prices correct as at today. 

Work in progress. 

If anyone has some updated info please post. 

For eg, WCL recently ann'd first 3P. Not included yet.


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## skc

kennas said:


> I've updated the spreadsheet, but it's not complete. Prices correct as at today.
> 
> Work in progress.
> 
> If anyone has some updated info please post.
> 
> For eg, WCL recently ann'd first 3P. Not included yet.




Nice one Kennas. Just noticing that EV to 3P calculation should be the other way round. i.e. EV / 3P.

The smaller the number, the more undervalued it is relatively...


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## Sean K

skc said:


> Nice one Kennas. Just noticing that EV to 3P calculation should be the other way round. i.e. EV / 3P.
> 
> The smaller the number, the more undervalued it is relatively...



Ooops, cheers. Will amend. 

It's EV / P...

Looking forward to this expanding a bit and getting the correct info.

Open to suggestions for improvement of course!!


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## CapnBirdseye

Just trying to get a handle on INP's CSM worth. 



> Now 2Independent consultants Resource Investment Strategy Consultants has calculated that the Innamincka Dome contains an estimated potential high side recoverable CSG resource of up to 800 Billion standard cubic feet (“Bscf”).




http://www.proactiveinvestors.com.a...seam-gas-targets-with-agl-in-august-1855.html

AGL have taken 35% and 37.5% interest in PEL103 and PEL101.

What I really want to know is is there a rule of thumb for converting Bscf to PJ?


----------



## Dukey

CapnBirdseye said:


> Just trying to get a handle on INP's CSM worth.
> 
> 
> 
> http://www.proactiveinvestors.com.a...seam-gas-targets-with-agl-in-august-1855.html
> 
> AGL have taken 35% and 37.5% interest in PEL103 and PEL101.
> 
> What I really want to know is is there a rule of thumb for converting Bscf to PJ?




I think 1 Bscf is roughly 1 PJ.

Download kennas's's's' .XLS file below - pretty sure i put the conversion factors on the bottom of the list.

.....  havn't looked at INP - thought they were conventional only?
- could be worth a look.


----------



## CapnBirdseye

Dukey said:


> I think 1 Bscf is roughly 1 PJ.
> 
> Download kennas's's's' .XLS file below - pretty sure i put the conversion factors on the bottom of the list.
> 
> .....  havn't looked at INP - thought they were conventional only?
> - could be worth a look.




Worked out the answer from one of your other posts Dukey...

https://www.aussiestockforums.com/forums/attachment.php?attachmentid=31548&d=1247213609

1Bcsf = 1.076 PJ or thereabouts.

Now they seem to have a good few permits and information is scattered.  Also they don't list gas reserves and P1, P2.. rather Low,  Best Estimate and High.  I have also found a reference to P10 reserves.

The best locations for reserve info..

http://www.innapet.com.au/upload/r20090429%20Innamincka%20Asset%20Review%20Update%20-%20PEL%20103%20and%20PEL%20101%2029%20Apr%2009.pdf

and much older..

http://www.innapet.com.au/upload/r20060103%20Independent%20Consultants%20Firm%20Up%20Innaminckas%20Reserves.pdf

The %interests and oter data has most likely changed since this was completed.

So, and idea what 'Best Estimate' etc.. and P10 reserves mean?


----------



## Dukey

For those interested - A while back i found on the web a general publication on Coal Seam Methane in the 21st century...

I posted it on the MEL thread.

Direct link to download (hopefully) is here - it's about 1.4(?) MB - failing that find it on the MEL thread.

https://www.aussiestockforums.com/forums/attachment.php?attachmentid=31548&d=1247213609

happy reading
-d


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## Sean K

If I didn't have so much tied up in ICN, MEL and WCL my portfolio would be going great guns the past few weeks. 

Has anyone considered that the recent prices paid for P's was way over the top and that the majors have probably got all the good acerage they need for the forseeable future meaning that the juniors remaining will be left to wallow.... 



Maybe future takeovers will be at far far less a value. If at all. 

Up for discussion.


----------



## CapnBirdseye

At current valuations you would need a fair bit of cash to buy any of the juniors outright.  

From memroy MEL would set you back over $800M.

That said there is talk of a Santos takeover, and that they have made their recent CSM acquisitions to make them look for attractive.

Perhaps someone with the kind on money to buy Santos would look for much cheaper options and cut out the middle man.

Any idea who the likely big players are that haven't already got themselves CSM positions?


----------



## Mad Mel

CapnBirdseye said:


> Any idea who the likely big players are that haven't already got themselves CSM positions?




Exxon Mobil is notably absent thus far.  They wouldn't mess around with bit players though, they'd pick up STO.  

Though Shell is already involved with Arrow, they are another that I could see taking a run at STO, making themselves the clear leader for a LNG facility.


----------



## rogue_investor

Found this article.  Haven't seen China as a big buyer of LNG in the past but they haven't got a lot of capacity and usage increase is a biggin..

I recall AOE had a tie with China.. any other of the CSG small caps people are aware of?

    Aug 14 (Reuters) - China, the world's No.2 energy user, is 
set to nearly triple use of natural gas to about 200 billion 
cubic metres a year by 2020, doubling the share of the green fuel 
in total energy consumption from the current 3 percent. 
    The bulk of that supply will come from domestic fields, which 
have remained under-developed for years due to artificially low 
state-set prices to support the main user, the fertilizer sector. 
    China will also secure supplies through imports from Central 
Asia via long-distance pipelines and by tankers shipping in 
liquefied natural gas from exporters such as Australia, Qatar, 
Indonesia and Russia. 
    By end of 2008, China's proven gas reserve was 2.46 trillion 
cubic metres, or 1.3 percent of the world's total, according to 
BP Statistical Review of World Energy. 

    The following table shows China's major natural gas fields, 
their operators, proven reserves, production capacity and the 
year they started operations, as reported by industry websites. 
All reserve and output figures are in billion cubic metres. 
----------------------------------------------------------------- 
Gasfield               Operator  reserves   capacity   start date 
----------------------------------------------------------------- 
Longgang, Sichuan      PetroChina    ~         ~       ~ 
Kela2, Xinjiang        PetroChina   284      12.5      2004 
Sulige,Inner Mongolia  PetroChina   534      10.5      2006 
Qingshen, Heilongjiang PetroChina   130       1.0      ~ 
Dina2, Xinjiang        PetroChina   175       4.0      2009 
Mahe, Xinjiang         PetroChina    30        ~       2007 
Yingmaili, Xinjiang    PetroChina    66       2.5      2007 
Changbei, Shaanxi   PetroChina/Shell  ~       3.0      2008 
Puguang, Sichuan        Sinopec     356       12*      2009 
Chuanxi, Sichuan        Sinopec      ~        2.5      ~ 
Daniudi, Inner Mongolia Sinopec     330       2.0      2008 
Songnan, Jilin          Sinopec      48       1.0      2009 
Ya 13-1, S. China Sea  CNOOC Ltd    100       3.4      1995 
Panyu,South China Sea  CNOOC Ltd     45        ~       2009 
Dongfang,S. China Sea  CNOOC Ltd     97       2.4      2003 
Pinghu, E. China Sea   CNOOC/SINOPEC  ~       0.5      2003 
Liwan3-1,S. China Sea  CNOOC/Husky  114-171   ~           ~ 
-----------------------------------------------------------------


----------



## grace

Anyone noticed the great land grab going on in the Galilee Basin?  ECU, WCL, COI, BUL.......can't think of anyone else, but there would be more.

Is ECU the most advanced?  I have studied these old drills at Rocky Creek in detail.  Anyone have any other leads in the Galilee.  Is there anyone else with a drill down yet?  

I am very interested, so post away!  Thanks!


----------



## swm79

Has anyone seen what Woodsides cheif executive has said:



> the costs emerging for aspiring coal seam gas companies are “horrific”.
> 
> In dramatic contrasts to key competitors such as BG or Santos, Voelte has not spent a penny of Woodside money on coal seam gas. As a result he has nothing to lose with his outburst, but with a lifetime in the petroleum industry what Australia’s top “gas salesman” has to say cannot be easily ignored.






> The key points in Voelte’s criticism of coal seam gas are technical and financial, starting with an observation that “the coal-seam guys are having a bit of difficulty with their economics.”
> 
> “What happened 18 months ago is that you had coal-seam euphoria,” he says. Some of that euphoria was created by “guys who knew what the game was”, and that game was to declare a large resource of coal seam gas “and get out”.
> 
> Those who sold, Voelte says, “were smart as hell”. “They got out and other people paid huge prices and now they’re trying to figure out how to make these plants work. And, what are they running into? They’re running into [questions such as] how do you drill this many wells and keep them all running?
> 
> “What in the hell do you do with the water? You have to treat the water, and while some is clean, some is saline, some has magnesium and manganese and its really going to be a high-cost disposal issue.
> 
> “Number three: they’re finding out you have to compress all this stuff when it comes out. There’s not a lot of pressure to get it down to Gladstone. What happens is that if you take a close look at the Santos environmental impact statement, and look at the efficiency of the plant, everybody first thought this is all methane, without any carbon dioxide exposure, that these are going to be low-cost plants to build for the emissions trading system. Aah … wrong.”
> 
> Voelte says a rating of efficiency (greenhouse emissions per tonne of LNG) shows a clear advantage for conventional natural gas over coal seam gas.
> 
> “This is not me talking,” he says. “This is if you go look at their environmental impact statements. There’s been a late flurry of the coal seam guys working with [Climate Change Minister] Penny Wong, and you heard [Queensland Premier] Anna Bligh say we may just except coal seam methane from the emissions trading scheme, which [laughs] ain’t going to happen.”
> 
> According to Voelte, coal seam projects have a problem with emissions that is far greater than the emissions issue facing the North-West Shelf. “Their permitting [cost] on a unit basis is going to be more than double on a unit basis, which is horrific.
> 
> “Then you have the problems of gathering the gas, and starting the plant, with talk of building a surge bottle, which means an underground reservoir to store gas and act as a regulator.”
> 
> Voelte’s powerful criticism, which continues on to the question of gas quality and the possible need to blend coal seam gas with conventional natural gas, raises questions that few people outside the world of gas have previously considered; and while they come with an admitted degree of bias, they are questions to be considered.
> 
> So what happened when the coal seam boom hit the Australian stockmarket? “In my opinion, euphoria happened. The smart guys got out, and now there are other guys hung with big deprecations and the quiet word is that they’re all struggling to make the economics work.”


----------



## orr

swm. 
   If Voelte's report on CSM is as profound as Volker's report on AWB, You'll see large sale from the Non-Executive Chairman of ESG come through the pipes very soon dated the the day before Voelte's announcement. If there's any canary in these coal seam mines it's the Honorable J Anderson.


----------



## Wysiwyg

grace said:


> Anyone noticed the great land grab going on in the Galilee Basin?  ECU, WCL, COI, BUL.......can't think of anyone else, but there would be more.
> 
> Is ECU the most advanced?  I have studied these old drills at Rocky Creek in detail.  Anyone have any other leads in the Galilee.  Is there anyone else with a drill down yet?
> 
> I am very interested, so post away!  Thanks!




Yes Grace alot of activity both coal (Clive Palmer excerpt below) and CSG exploration with 

Westside Corporation --- WestSide secures foothold in Galilee Basin
Exoma --- Galilee Gas Project
Blue Energy --- Galilee Basin ATP 813P
Comet Ridge ---  Galilee Basin drilling programme 

to name a few. Obviously Arrow Energy has the supply contract to the LNG plant but surely they will need further reserves to ensure supply. This is where the smaller exploration companies fit in and the closer to the LNG plant the better to begin with before they have to source from further afield. BOW being the major player in the nearology stakes with their 100% Blackwater reserves.

Some excerpts .... 


> Fri, September 18, 2009
> 
> Golar LNG Energy has signed a Heads of Agreement (HoA) with Toyota Tsusho of JapanThe agreement covers the delivery of approximately 1.5 MMt/a of LNG to Toyota Tsusho over a 12 month period from 2014 to 2026, as well as the parties’ intention to discuss Toyota Tsusho’s potential acquisition of a minority equity interest in the project.
> 
> Golar chief executive officer Oscar Spieler commented “We are delighted to have reached this important milestone in the development of the Gladstone LNG Project. We look forward to building a strong and mutually beneficial relationship with Toyota Tsusho over the life of the project.”
> 
> *Arrow managing director and chief executive officer Nick Davies said “Our plans to deliver the world’s first coal seam gas (CSG) to LNG project are firmly on track for late 2012*.”







> Mining magnate Clive Palmer has unveiled plans for one of the nation's biggest-ever resource projects in Central Queensland.
> 
> The $6.5 billion Galilee Basin thermal coal mine, railway and port development is expected to create more than 6000 jobs during its three-year construction phase and some 1500 jobs once operational, possibly in 2013.


----------



## doogie_goes_off

BUL showing signs of nearing production, hence my picking of them in the Sept competition. Seems like the right place to be real-estating.


----------



## explod

A stong move by gold and silver tonight.  US dollar has fallen to its lowest level in 12 months.  Gold on the other hand is up 10%, not a great deal of course but that is the strength of the two.

The big G conference is obviously making players nervous.  Will reality dawn or more of the same.

Interesting week this one.


----------



## Wysiwyg

Surely at some stage in the future all the CSG companies proving up resources will be good value. The companies on my watch list all come off their highs in Sept. / Oct. 2009 and are still trending down. Some are beyond the exploration phase and are moving toward construction while others are still proving up reserves. Nevertheless if there is value in a substantial reserve of methane then so should the companies be recognised.


----------



## orr

Time will tell if this one if this one flies, people spent a long time trying to turn lead into gold. 

"COAL SEAM GAS INDUSTRY’S SALT WATER PROBLEM MAY CREATE NEW SODA ASH SUPPLY FOR PENRICE
The continued development of Australia’s burgeoning coal seam gas industry could provide the nation’s only soda ash producer, Penrice Soda Holdings Limited (ASX: “PSH”), with a new market outlet for its flagship product.
Penrice’s Chairman, Mr David Trebeck, told shareholders at today’s annual meeting in Adelaide that the Company had been working closely with the coal seam gas sector to devise a cost effective solution for removing salts from the coal seam gas water stream.
“These salts are predominantly soda ash and could provide a new market outlet for Penrice. For the coal seam gas companies, it solves a major environmental headache and operational bottleneck, while resulting in quality water that could be applied to the environment or human consumption as required,” Mr Trebeck said.
“Penrice has developed novel technology to remove the salts. There is work yet to be done before the treatment process is fully proven, but it represents a potentially valuable near term diversification of earnings for the Company, from both the intellectual property and the marketing of the resultant product,” he said.
Ongoing work with the coal seam gas companies is expected to include building and operating a pilot plant to produce natural soda ash from coal seam gas waste water in Queensland."

 For the full release go to this;
http://imagesignal.comsec.com.au/asxdata/20101028/pdf/01113736.pdf
With the ever increasing environmental pressure there'd be a lot of to gain for a company that comes up with the goods in this area.


----------



## Wysiwyg

The Allan Jones speech at yesterdays National Press Club was damning of coal seam gas exploitation. Mention of chemicals used in well fracture entering the water table along with the mega-litres of water (de-watering wells) that will be extracted from the artesian basin each year is staggering. Salt entering the soil is another issue that has unknown impact.

Licenses to drill by a government desperate for jobs and desperate for money to return budget to surplus by 2012-13. 



> Current modelling estimates show the combined average water production for the total CSG industry at around 75,000 ML per year (or equivalent to 0.15 Sydney Harbours), with a peak of less than 140,000 ML per year.






Wysiwyg said:


> Surely at some stage in the future all the CSG companies proving up resources will be good value. The companies on my watch list all come off their highs in Sept. / Oct. 2009 and are still trending down. Some are beyond the exploration phase and are moving toward construction while others are still proving up reserves. Nevertheless if there is value in a substantial reserve of methane then so should the companies be recognised.



So as not to come across hypocritical as is the case with trading share market companies, back then these issues raised above I was unaware of. I am personally for minimising mining impact on the environment. Not holding coal seam gas companies.


----------



## Smurf1976

Wysiwyg said:


> So as not to come across hypocritical as is the case with trading share market companies, back then these issues raised above I was unaware of. I am personally for minimising mining impact on the environment. Not holding coal seam gas companies.



ALL power pollutes, ALL of it.

All we get to choose is what is polluted and in what way. But there's no such thing as totally "clean" energy.


----------

