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Just put my thoughts down quickly
540 wells for Fairview - seems very light. What is STO's requirement for one train? BG's requirement is 550TJ/day. So each STO well would have to do a TJ a day. I think they would be wanting closer to 700 wells on line.
Tax - rest assured that the QLD govt will ensure it gets a big slice. Remember what they did to coal? "Oh, we've got a $2B hole... I know we'll raise royalty on coal from 7% to 10%".
That said, the resource is owned by the State, so the Commonwealth will not be able to touch it.
I'm sure the analysts did their numbers thoroughly but as i understand under the PRRT exploration costs are deductible - it is a net back method. State royalties on the other hand are far more specific and many expenses are not deductible.
Ramp Up - Two years for fairview! And what are they going to do with all the water. STO, ORG and BG will all be looking to put their water somewhere. It won't evaporate, RO is very very expensive and the Govts are worried about salinity. Further to this, where the hell is all the gas going to go in the ramp up phase? And like i have said before, they are not sure that they can shut the wells in without losing pressure and another dewatering phase. On the other hand, there is a theory of shutting the wells in on a rotational basis. This would involve rotating through a pod of three or four. To shut them in remotely adds $30K to the cost of each well - 30M over 1,000 wells.
Footprint - How huge is the footprint of CSG?! Imagine thousands of wells in SE Qld each spread 1km apart with gathering system networks and trunklines. Compare this to the footprint of eight wells in govt waters to having to deal with land holders? I would love to see a 2013 gathering system "x-ray" of SE QLD!
Summary - I am know expert, but CSG to LNG has many challenges whereas conventional to LNG is tried, tested and proven. Like i said, where there is a will, there is a way and the prices being paid for the likes of PES show the extent of the will.
540 wells for Fairview - seems very light. What is STO's requirement for one train? BG's requirement is 550TJ/day. So each STO well would have to do a TJ a day. I think they would be wanting closer to 700 wells on line.
Tax - rest assured that the QLD govt will ensure it gets a big slice. Remember what they did to coal? "Oh, we've got a $2B hole... I know we'll raise royalty on coal from 7% to 10%".
That said, the resource is owned by the State, so the Commonwealth will not be able to touch it.
I'm sure the analysts did their numbers thoroughly but as i understand under the PRRT exploration costs are deductible - it is a net back method. State royalties on the other hand are far more specific and many expenses are not deductible.
Ramp Up - Two years for fairview! And what are they going to do with all the water. STO, ORG and BG will all be looking to put their water somewhere. It won't evaporate, RO is very very expensive and the Govts are worried about salinity. Further to this, where the hell is all the gas going to go in the ramp up phase? And like i have said before, they are not sure that they can shut the wells in without losing pressure and another dewatering phase. On the other hand, there is a theory of shutting the wells in on a rotational basis. This would involve rotating through a pod of three or four. To shut them in remotely adds $30K to the cost of each well - 30M over 1,000 wells.
Footprint - How huge is the footprint of CSG?! Imagine thousands of wells in SE Qld each spread 1km apart with gathering system networks and trunklines. Compare this to the footprint of eight wells in govt waters to having to deal with land holders? I would love to see a 2013 gathering system "x-ray" of SE QLD!
Summary - I am know expert, but CSG to LNG has many challenges whereas conventional to LNG is tried, tested and proven. Like i said, where there is a will, there is a way and the prices being paid for the likes of PES show the extent of the will.
It has broken all time highs today though, so I won't hold my breath.
