Australian (ASX) Stock Market Forum

The CSM Thread! (Coal Seam Methane)

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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?
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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.
 
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.
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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?
 
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....

:confused:

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

Up for discussion.
 
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?
 
CapnBirdseye said:
Any idea who the likely big players are that haven't already got themselves CSM positions?
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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.
 
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 ~ ~
-----------------------------------------------------------------
 
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!
 
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.
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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.”
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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.
 
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!
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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.”
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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.
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BUL showing signs of nearing production, hence my picking of them in the Sept competition. Seems like the right place to be real-estating.
 
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.
 
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.
 
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.
 
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.
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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.
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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.
 
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.
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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. :2twocents
 
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