Australian (ASX) Stock Market Forum

SGL - Sydney Gas

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The perentage share price increase that holders of SGL have enjoyed over the past five weeks is reflective of the whole sector.

Does SGL have a peer to draw an operational/exploration comparison from?

It's my understanding that Andy Lucas is out of the country on business. I wouldn't expect any significant annoucnements in his abscence.

Bill

(I continue to hold...)
 
i am a big believer in the coal seam gas boom at the moment

having watched SGL for the last couple of days, i notice it tends to open at a high price and then get smashed with profit taking..

is it stalling or taking a breather before it hits $1 and is in par with its competitors ?

also the fact that it is in JV when AGL tickles my fancy... and not to mention there was speculation of talks with BUL (blue energy) within last couple of months..

is also true that QGC made a take over for SGL a while back??
 
kingbrown said:
Interesting news on abc Late Line last night

Re gas

Coal seam gas sector


http://www.abc.net.au/lateline/business/
Click to expand...

Of course, no mention of SGL prospects.

IMO SGL's SP rise since 18th Apr (23.5c) to today (about 46c) has been almost entirely courtesy of all the publicity and interest generated by the two most rapidly expanding players in the CSM industry (QGC, AOE). A little interest by the AJL buy-in has helped too.

However, unless SGL is somehow doing some good deals "behind the scenes" that we few bunny "investors" are blissfully being kept unaware of (I suspect at the current pathetic rate of investor up-dating that SGL will have no further major announcements to make until the end of year report in July), it risks being trampled by these other rampant CSM bulls in the stampede to secure looming massive NSW and Fed Government project support.

Talk about leaving their run late.......

*sweat*

AJ
(holding... hopefully not Aces and 8's...)
 
Quoting from SGL's home page

"How Much Gas is in the Hunter?

SGL completed the feasibility study in May 2003. The results are as follows:

* total resource of 673 billion cubic feet (BCF); and

* reserve (recoverable gas resources) of 424 BCF (at a 63% recovery rate),

The 100 square kms (24,890 acres) study area focused on the resource potentially available from five coal seams: Blakefield, Glen Munro, Woodlands Hill, Mt Arthur and Piercefield, for the commercial production of gas for use in the Singleton-Muswellbrook and Newcastle regions. There are significantly more seams available that can be produced from in the area and exploration activities are focused on fully quantifying reserves.

On 16 July 2002, the (then) Premier of NSW, the Hon Bob Carr MP, announced in Newcastle that the Government had signed a Deed of Agreement with SGL to study the feasibility of commercial production of gas in the upper Hunter region around Singleton and Muswellbrook.

When announcing the Agreement, Mr Carr said that, "This is an important study that has the potential to create jobs, improve mine safety, help the environment and provide an alternative energy source for the upper Hunter."

That was a l-o-o-ng way back in 2002.

How long is a piece of string......

How far down that piece of string has SGL managed to inch?


Ummm... sorry for being a tad downcast today..... all this *Wow* Factor news over the last 6 months from AOE and QGC while SGL skulks down a deep horizontal hole is making my head hurt..... LOL

I'll just go and have a little lie down now, ok?


AJ
 
Hey Jeff,

page 6 of the Interim Report for the Half-Year ended 31 December 2007 states the following:
Likely developments and expected results of operations
Information on likely developments in the operations of the consolidated entity and the expected results of operations have not
been included in this interim report because the directors believe it would be likely to result in unreasonable prejudice to the
consolidated entity.

What do they mean? There must be gas in Sydney.

I think there is **** loads of gas there.

AJL only need 75pj increase to get their 60c options.

Jonathan
I hold
 
A disappointing end to a disappointing week.

After touching $0.57 on Monday the sp is 15% less than this time last week.

To my frustration (read jeasouly), ESG is capturing all of the CSG lime light in New South Wales all because there might be a pipe line passing through its acerage on its way to a power station that might get constructed in a few years time. Good luck to all of the ESG shareholders. Don't forget to leave some profit in the market for others.

I don't understand. ESG and SGL operationally are very similar. Both are in the early stages of a reserves certification programme and both have similar gas in place estimates. SGL has gas producing infrastructure in place at Camden (ESG has no infrastructure), SGL has a number of petroleum production licences (ESG has none) and SGL operates inside the largest market in Australia.

Where is it all going wrong?
 
Sydney Gas has finally worked out how to get product out of Camden albeit very slowly. SGL will require either increased equity or JV partners to evaluate and develop its projects. This means dilution or debt.

SGL will need to lift its flow rates at Camden from in-seam drilling plus lift its news flow from exploration and evaluation in the Hunter if they want to stay in touch with the CSG field.

just an opinion.
 
I've gone a dipped by head in a bucket of ice water and feel much calmer now.

Agree that horizntal wells are the way to go. Unlikely to see too many more vertical wells in the Camden area - the coal seams are too narrow at only 2-3m each.

Eight new productin wells are coming on line at Camden. Would be nice to see some data.

Bill
 
SGL will have their day. Their worst days are behind themand the Hunter will be their vehicle to success. The hard yards are done. If you have CSG plays then you are in business.

My concern is that that some large reserves are going to be coming online by a lot of companies.

I would feel worse if i was a traditional gas play though.
 
Sydney Gas's Camden project..... the amount of gas flowing from its wells has been underwhelming....
(http://business.smh.com.au/gas-bonanza-20080606-2mzw.html?page=fullpage#contentSwap2)

Lucas is confident that a revised drilling plan has the potential to prove up significant additional reserves within the Sydney Basin (http://www.lucas.com.au/Divisions/Investments.htm)

The prospect of LNG exports which requires liquefying gas for export....international partners are more interested in the profits associated with selling LNG at prices like $US17 a gigajoule rather than selling gas into the domestic market at less than $4 a gigajoule

"There is a risk that any development of an LNG export project could reduce the availability of gas to the domestic market in eastern Australia," said a report by the international energy consultancy Wood Mackenzie that was submitted to the Owen Inquiry into NSW's electricity supply last year.

"Whilst still to be proven commercially, the indigenous gas supply of NSW has the potential to grow dramatically and reduce the need for interstate gas importation in the future," Wood Mackenzie said. "The ultimate potential of this industry in eastern Australia could be enormous."

ALTHOUGH NSW does not produce nearly as much coal-seam gas as Queensland, there is a lot of potential. And all of the prime acreage has been tied up for years by a handful of players who are running active exploration programs...

...As part of a new pipeline plan, QGC expects to pipe its gas down to NSW to supply a proposed power station in the Hunter Valley. But in addition to linking Queensland's coal-seam gas supply to NSW, the pipeline could lead to an added bonus...

..QGC's Cottee is not worried about the competition; instead he wants to encourage the development of the industry...


The NSW Government acknowledges the state remains highly underexplored for natural gas compared to neighbouring states, even though it is Australia's largest market for the fuel.

(http://business.smh.com.au/gas-bonanza-20080606-2mzw.html?page=fullpage#contentSwap2)
 
Jonathan111 said:
Sydney Gas's Camden project..... the amount of gas flowing from its wells has been underwhelming....
Click to expand...

Oh dear. More negative media sentiment like that will likely put a lead sinker under the SP come next week!

If it drops back to 25c, maybe a big shark will snap it up for peanuts.....



AJ
 
http://wollombi.nsw.au/documents/doc-22-information-notice-wollombi.pdf

Information Notice to the Resident
30th May 2008
Dear Sir/Madam,
Re: Sydney Gas Exploration Activity‐‐‐Wollombi 01

I am writing to advise you that Sydney Gas will soon be conducting gas exploration work in your area and to invite you to a “Community Presentation” to explain the activities and address any questions you may have.
Sydney Gas is currently exploring the Hunter for coal seam gas reserves. As part of the exploration program, we will be drilling a core hole in the above‐mentioned area. To explain what a core hole is, we have enclosed the latest copy of our community newsletter. On page 3, you will find a description and the process involved. To view a map of the area, you can visit our website:
www.sydneygas.com (Exploration/Field Activites/Wollombi 01)
In the coming days we will commence preparation of this site to accommodate the arrival of the drilling rig. This will include activities such as building a temporary road to the site. We expect that the drilling will take less than nine weeks.
The drilling will be confined to:
7:00am to 6:00pm, Monday—Friday
7:00am to 1:00pm, Saturday



Sydney Gas will commence Exploratory Drilling in Wollombi (across from Mulla Villa) and Paynes Crossing (Stockyard Creek) with preparatory work and the Wollombi rig going up THIS WEEK
 
The Hunter gas exploration activities could add another 20-30PJ of production per annum given the thicker coal seams of those areas and the good gas contents. http://www.sydneygas.com/content.php/2.html#mod12

http://www.sydneygas.com/download.php?id=1981
1979.jpg
 
Well, blow me down....

An announcement!

----------------------------

"MEDIA RELEASE:

SYDNEY GAS GRANTED SIXTH PRODUCTION LEASE

11 June 2008

Sydney Gas Ltd advises that the Minister for Mineral Resources has granted NSW’s sixth Petroleum Production Lease (“PPL”) under the Petroleum (Onshore) Act 1991 to Sydney Gas for a 21 year term. PPL 6 covers an area of 7.2 km² at Camden. AGL Production (Camden) Pty Ltd and Sydney Gas (Camden) Operations Pty Ltd now holds five petroleum production leases: PPLs 1, 2, 4, 5 and 6 covering an aggregate area of 213.20 km²."

http://imagesignal.comsec.com.au/asxdata/20080611/pdf/00849830.pdf

-----------------------------

Well, not the BIG one (eg: Hunter licence), but better than nothing I suppose.

Cheers?

AJ
(holding)
 
IMO, no chance of a PPL this year for the Hunter.

What is far more frustrating is no commentary about the significance of the additional PPL. What does the new PPL allow the company to achieve? Does it allow the immediate connection of completed production wells to the Rosiland Park facility or is for future wells? How many? etc etc

I wonder how long it took for the PPL to be approved?

Bill
 
Rights to commercially produce coal seam gas will be available only by way of petroleum production lease. (www.aar.com.au/pubs/pdf/res/foresaug03.pdf)

On another topic,

I think the "Chimaera Effect" has passed for now...

Someone bought a huge amount of shares on the 27th of May at 03:49:45 PM 0.440 10,000,000 4,400,000.00 XTSPOS....
..on the 27th May the General Counsel of Sydney Gas advised that approval had been granted for each of the five Wollombi coreholes..

Remember that AJL bought approx 4.7 million shares in the month of May

Hopefully it is time to put away the bucket of ice water.

Jonathan
(I hold)
 
sillybilly said:
IMO, no chance of a PPL this year for the Hunter.
Click to expand...

IMO you are probably right. "Hopefully" though there will be some detailed information in the next few months regarding core hole progress and findings.

What is far more frustrating is no commentary about the significance of the additional PPL. What does the new PPL allow the company to achieve? Does it allow the immediate connection of completed production wells to the Rosiland Park facility or is for future wells? How many? etc etc

I wonder how long it took for the PPL to be approved?

Bill
Click to expand...

Agree entirely Bill. Again, one would wish that the new management team will start to promote the company better and provide a lot more detail on what such announcements mean for the future of SGL! The past track record for keeping shareholders informed has been appalling, so here's hoping.....

AJ
 
Jonathan111 said:
Rights to commercially produce coal seam gas will be available only by way of petroleum production lease. (www.aar.com.au/pubs/pdf/res/foresaug03.pdf)

On another topic,

I think the "Chimaera Effect" has passed for now...

Someone bought a huge amount of shares on the 27th of May at 03:49:45 PM 0.440 10,000,000 4,400,000.00 XTSPOS....
..on the 27th May the General Counsel of Sydney Gas advised that approval had been granted for each of the five Wollombi coreholes..

Remember that AJL bought approx 4.7 million shares in the month of May

Hopefully it is time to put away the bucket of ice water.

Jonathan
(I hold)
Click to expand...

Good points Jonathan. I "hope" you are right and the ice bucket need not be tended so closely in the near future and beyond! (I'd also love to put the "hope" word to bed for a rest too!!)

Have you thought about applying to SGL for an Investor & Media Relations position? :)


AJ
(holding)
 

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