Nice announcement just out....tripled their gas resource and only 1% drilled to date. The announcement states that they hold PEL on the biggest onshore gas. Now they have secured drill rig for 2008, hopefully they will be getting stuck into it. The sleeping giant in my opinion. I hold.
OK Does anyone have a view on ESG? I've been holding onto this dud for a while.
It crashed 10% today .. but I guess most of the coal seam companies did.
Anyone know of any news coming around, what the company is up to etc? I can't find much info.
EASTERN STAR LAUNCHES NSW’S BIGGEST EVEREastern Star Gas Limited (ASX: ESG) together with its joint venture partner, Gastar Exploration Ltd (AMEX: GST & TSX: YGA.TO), has commenced its 2008coal seam gas (CSG) reserves appraisal programme within Petroleum exloration Licence PEL 238 in Northern NSW.
CSG RESERVES APPRAISAL PROGRAM
Mr. David Casey, Managing Director of ESG, said “The fully-funded PEL 238 programme is the largest CSG focused reserves appraisal programme ever conducted within NSW. The programme has been specifically designed to accelerate major gas reserves upgrades to meet our 2P reserves target for 2009 of 600PJs and potential sales commitments of over 1000PJs ununder Memoranda of Understanding (MOU) with Macquarie Generation and Babcock & Brown”.
“The sheer size of those MOUs, which together represent a 50% increase in NSW’s gas market, underpins a reserves appraisal programme of this magnitude,” Mr Casey said.
As part of the 2008 programme up to 20 coreholes will be drilled, commencing with Dewhurst 2 which was spudded on 12 March and is located to the east of the Bibblewindi pilot.
Mr Casey advised that “the corehole programme is designed to both expand upon current reserves in the Bibblewindi and Bohena areas as well as to evaluate the CSG potential across additional portions of PEL238, which has to date only been lightly explored.”
He added that “The initial focus on the Dewhurst area builds upon the success of the 2007 corehole programme, which identified a 15 metre thick, high gas content and high permeability coal seam to the south of Bibblewindi. Using seismic data we have identified, and plan to confirm through the core drilling, that this highly prospective coal seam extends through the Dewhurst area.”
In addition to the coreholes four multi-lateral production pilots are proposed for 2008, with drilling of the first pilot scheduled to commence in May.
As at this report date, Dewhurst 2 had reached total depth of 975m after intersecting approximately 17.5m of coal within the Black Jack Formation, including 9.1m of coal in the Hoskissons seam and 21.6m of coal within the Maules Creek Formation, including 18.2m of coal in the Bohena seam.
The single 14.7m coal ply within the Bohena seam is the thickest single ply intersection in the PEL238 area.After wireline logging, a number of Drill Stem Tests will be conducted to evaluate the permeability of the Hoskissons and Bohena coal seams. After testing all significant seams the well will be plugged and abandoned.
certainly a takeover target now that QGC is wading into the NSW market.
Let's not forget QGC had a tilt at Sydney Gas not that long ago.
This pipeline will run by ESG tenements that ESG can tap into, or they can simply go and knock on the door of Hillgrove for a friendly chat!!
That will occur sooner or later imo. ESG - great company, but one that will be consumed undoubtedly.
cheers.
QGC said it has sufficient gas reserves in hand to supply its planned power station in NSW, although it may prove cheaper to take advantage of potential supplies through the Gloucester and Gunnedah basins as reserves in these areas are firmed up.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?