MEL - Metgasco Limited

[CapnBirdseye]

I'm certain someome is taking advantage of poor liquidity to dump stock to hit the SP.

A very strange trade went through at 0.55 just big enough to drop to that level.

I don't think I'm being paranoid here.

 

[adobee]

From the annoucement a few days ago..
"Metgasco (ASX:MEL) advises that the drilling of the coal seam gas (CSG) exploration well Wyan-E1 has commenced."

Does anyone have ideas of time frames for result of drilling of the csg to be announced to market ?? are we looking 3-6 weeks or 3-6 months ?

 

[YOUNG_TRADER]

Hey Adobee, weeks if that not months, its very easy to see if you've hit coal in the drill cores,

Testing the coal quality for its gassyness takes a bit longer

Very important well though

MEL has a very important well underway drilling on PEL 13 which is next door to PEL 16

This well is important because 100% of MELs large reserves are on PEL 16 (and only a small portion of it ie 5%-10% of PEL 16)

Success in this well will confirm continuity of the CSG resource throughout broader parts of PEL 16 and into PEL 13, could be a real big company making well IMO


Still Im here for the takeover play

 

[Skip1jz]

Looks like MEL and MPO are about to go into trading halt, just tried to get a quote on both stoks and they were both Pre Open. Lets hope for positive news on Wyan-E1. :I hold MEL:

 

[Sean K]

No idea what this means.

There's gas?


Free Gas Flows from Wyan–E1

Metgasco (ASX:MEL) advises that over the past week the Wyan-E1 coal seam gas exploration well has been drilled.

This well is a vertical exploration well drilled to a total depth of 702 metres. The Walloon Coal Measures were intersected at the predicted depth. A number of coal seams were present, however Metgasco is unable to advise the net coal at this location until the interpretation of wireline logs has been completed.

Free gas shows were observed during drilling. Metgasco conducted two flow tests of approximately 8 hours each.

The first production test was performed over the interval from 402 to 456 metres containing the Richmond coal seam. A continuous production test demonstrated gas flows of approximately 120,000 standard cubic feet per day (“scfd”) through a 24/64” choke.

A second production test of a further 8 hours was conducted over the total Walloons section once the well reached total depth. This test demonstrated sustained gas flows in excess of 160,000 scfd throughout the period with a flow rate at the end of the period of approximately 175,000 scfd through a 24/64” choke.

 

[CapnBirdseye]

I guess it means there is gas, and now MEL is in pre open, or at least thats what Comsec is telling me... trading halt coming?

 

[Mc Gusto]

yes gas and yes pre-open.

seems they can't drill as deep as they wanted but there is plenty of gas by the sounds of things!

the dogs will be running


thanks

Gusto

 

[CapnBirdseye]

Looks like MEL and MPO are about to go into trading halt, just tried to get a quote on both stoks and they were both Pre Open. Lets hope for positive news on Wyan-E1. :I hold MEL:

Ok, just read up the forum. Like you said skip. Lets wait and see what happens next.

Oh spoke to soon, we are open again..

 

[lbarks]

not much excitement in SP after that announcement. Sounds like theres gas there somewhere though. now looking forward to riflebird-E15

 

[Mc Gusto]

weird that one - back trading again and yes both MPO and MEL were in halt.

Strange

Thanks

Gusto

 

[CapnBirdseye]

Looks like MEL and MPO are about to go into trading halt, just tried to get a quote on both stoks and they were both Pre Open. Lets hope for positive news on Wyan-E1. :I hold MEL:

Ok, I'll be careful putting my tin foil hat on again, but someone is dumping stock on a rising price. Or is there another more plausible explanation?

 

[UPKA]

Ok, I'll be careful putting my tin foil hat on again, but someone is dumping stock on a rising price. Or is there another more plausible explanation?

a dump is when a large order is sold off at market price. when the order is sitting at a limit price, sounds more like a cap to me...

 

[Mad Mel]

What I took from the announcement was:

-Free gas flows means that there's gas. I hope someone with good CSG knowledge will comment on the flow rates.
-They intersected two different coal formations which potentially can be developed. Both flowed gas to the surface.
-The hole bridged (collapsed?) above the WCM, so they can't wireline log below that depth. I assume this means that they won't be able to determine the thickness of the coals in the WCM.
-The existence of the WCM that far west is a very good thing for MEL's PEL13.

 

[johannlo]

I'm naturally inclined towards paranoia and I can find no other explanation for this behaviour except for the market behaving completely irrationally. Occam's razor and all that.....

something is afoot that us ordinary retail investors are not aware of.

 

[Agentm]

The average CSG well produces between 5,000 and 30,000 m3 of gas per day.

http://www.pesa.com.au/Publications/pesa_news/latest_edition/images/pn100_70-72.pdf


1 Square Meter = 3 Square Feet


well reports 175,000 scfd through a 24/64” choke.


divide by 3

58,333 m3 gas per day

 

[shag]

one cubic metre isnt 3 square foot...
more like 9 in very rough figures.
its 3d not linear.
cant be bothered to work out exact figures. who uses imperial anyway.

 

[Mad Mel]

I'm mostly curious if these numbers provide any inference of what production figures may look like. Or perhaps they're completely unrelated. Or is it as simple as free-flowing gas = a good sign... or does it mean absolutely nothing when it comes to production later on.

 

[UPKA]

free flowing gas is def a good sign, as most cases with CSG u'll find that a lot of water needs to be pumped out before any gas flow.

 

[CapnBirdseye]

one cubic metre isnt 3 square foot...
more like 9 in very rough figures.
its 3d not linear.
cant be bothered to work out exact figures. who uses imperial anyway.

It works out to be 5000m3 per day.

Try this little app.... very handy indeed.

http://wscope.com/download/convert.exe

 

[Agentm]

one cubic metre isnt 3 square foot...
more like 9 in very rough figures.
its 3d not linear.
cant be bothered to work out exact figures. who uses imperial anyway.

your right

i am mixing up volumes and areas, so disregard, i was merely trying to convert the volumes reported to a industry report which used metric.. and i did it badly..