Australian (ASX) Stock Market Forum

The CSM Thread! (Coal Seam Methane)

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Gspot said:
Quoted from the The Daily Reckoning.
"But looking at the number of wells required doesn't even scratch the surface. Coal gas wells need maintenance. They need geophysical studies before drilling occurs. They need modelling, engineering design, regulatory approval and operating expertise.

The scheme will require its own pipeline system too. Santos and Queensland Gas will need 805 km of new gas pipelines for their contribution to Gladstone.

There's one firm providing all of these services, and more. This is a dynamic company that we believe has all the ingredients to be on the receiving end of the coal seam gas build up. "
Anyone know who thi company will be?
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Pretty sure it is AJ Lucas (AJL). See my posts on the AJL thread. Cheers Grace.
 
Wow - its a bloodbath across the board - and CSG / UCG stocks havn't been spared this time!!!

QGC and AOE both down a whack.... is it accumulation time?

LNC smashed.... why?
- is there a problem?
- is it just mkt sentiment?
- did POO plummet?
- or is it just that folks have realised (as I did not that long ago) that this trial/pilot burn will produce just 10bpd. 20000 bpd is still a fair way off - maybe not till well into 2009 from memory. (pls correct me if I'm wrong there).


Interesting times... I'm sure demand for gas and oil ain't going to dissappear so in the long run we'll be fine... :)

-dukey

(holding aoe, Qgc, bul, sxpo, cxyo, pes .... not holding LNC... yet.)
 
Time for the monthly update. Close of trade prices after market rout last day 3/7/08; Interestingly prices also precede release of Garnaut draft today. Will be intersting how this influences the various values over next month...

Col Lector said:
Closing Price 3/6/08:
CSM companies:
AJL 6.90
AOE 3.88
BLU 0.41
BOW 0.515
BPT 1.67
ESG 0.77
ICN 0.35
MEL 1.30
MPO 1.81
OIP 0.12
ORG 15.70
PES 2.50
QGC 5.69
SGL 0.495
SHG 2.58
SXP 0.61
STO 21.77
WCL 0.73

UCG/GTL companies:
BLK 0.45
CXY 0.185
GLX 0.40
LNC 3.75
MEE 0.75 any others? some are marginal inclusions
Click to expand...

CLOSING 3/7/08......
AJL 6.90; 5.90; -14.49
AOE 3.88; 3.05; -21.39
BLU 0.41; 0.07; -82.93
BOW 0.515; 0.34; -33.98
BPT 1.67; 1.27; -23.95
ESG 0.77; 0.60; -22.08
ICN 0.35; 0.21; -40.00
MEL 1.30; 0.90; -30.77
MPO 1.81; 1.87; 3.31
OIP 0.12; 0.13; 8.33
ORG 15.70; 16.28; 3.69
PES 2.50; 1.82; -27.20
QGC 5.69; 4.87; -14.41
SGL 0.495; 0.36; -27.27
SHG 2.58; 2.18; -15.50
SXP 0.61; 0.70; 14.75
STO 21.77; 19.81; -9.00
WCL 0.73; 0.57; -21.92

UCG/GTL companies:
BLK 0.45; 0.44; -2.22
CXY 0.185; 0.13; -29.73
GLX 0.40; 0.14; -65.00
LNC 3.75; 2.91; -22.40
MEE 0.75; 0.68; -9.33
 
Col Lector said:
Time for the monthly update. Close of trade prices after market rout last day 3/7/08; Interestingly prices also precede release of Garnaut draft today. Will be intersting how this influences the various values over next month...



CLOSING 3/7/08......
AJL 6.90; 5.90; -14.49
AOE 3.88; 3.05; -21.39
BLU 0.41; 0.07; -82.93
BOW 0.515; 0.34; -33.98
BPT 1.67; 1.27; -23.95
ESG 0.77; 0.60; -22.08
ICN 0.35; 0.21; -40.00
MEL 1.30; 0.90; -30.77
MPO 1.81; 1.87; 3.31
OIP 0.12; 0.13; 8.33
ORG 15.70; 16.28; 3.69
PES 2.50; 1.82; -27.20
QGC 5.69; 4.87; -14.41
SGL 0.495; 0.36; -27.27
SHG 2.58; 2.18; -15.50
SXP 0.61; 0.70; 14.75
STO 21.77; 19.81; -9.00
WCL 0.73; 0.57; -21.92

UCG/GTL companies:
BLK 0.45; 0.44; -2.22
CXY 0.185; 0.13; -29.73
GLX 0.40; 0.14; -65.00
LNC 3.75; 2.91; -22.40
MEE 0.75; 0.68; -9.33
Click to expand...

Thx Col.
... and sorry whats the 'Garnaut draft' - I've managed to not hear of it thus far...
 
Giday Dukey.... referring to the Garnaut Climate Change Review....ie, The implications of his recommended carbon-trading regime on CSG players should become clearer once the 500 page report is digested...., particularly the timetable, & treatment of energy (CSG)sector & electricity generators.
CSG sector should be a beneficiary if a progressive move to gas-fired is supported by non-issuing of free/subsidised emission permits to coal-fired generators.
How much of this is priced into CSG stocks today?
Will a more gradual phasing-in benefit some companies more than others?

The level of response of predators to Origin's "open-auction" of their CSG reserves should also come into play over the next month. Should help confirm a benchmark 2P/3P reserves price - subject of a fair bit of disparity at present.
I'm hoping for CSGers that the value inferred by the Petronas deal is confirmed.... :cool:
 
Col Lector said:
Giday Dukey.... referring to the Garnaut Climate Change Review....ie, The implications of his recommended carbon-trading regime on CSG players should become clearer once the 500 page report is digested...., particularly the timetable, & treatment of energy (CSG)sector & electricity generators.
CSG sector should be a beneficiary if a progressive move to gas-fired is supported by non-issuing of free/subsidised emission permits to coal-fired generators.
How much of this is priced into CSG stocks today?
Will a more gradual phasing-in benefit some companies more than others?

The level of response of predators to Origin's "open-auction" of their CSG reserves should also come into play over the next month. Should help confirm a benchmark 2P/3P reserves price - subject of a fair bit of disparity at present.
I'm hoping for CSGers that the value inferred by the Petronas deal is confirmed.... :cool:
Click to expand...

Ahh - OK - Thanks.

Yes - will be interesting to see the recommendations etc.
 
Comet Ridge Limited (COI) have coal methane interests in Qld and NSW.Still a long way from 1st base and there are better csm`s out there.

A large contingent CSM gas resource (an upside case of 1,000 petajoules of gas in place) has been delineated at Mahalo (40% int.) and further investment in this project is warranted. The two Galilee Basin permits are prospective for both CSM and deeper conventional oil and gas. A recently completed internal assessment of the potential in-place CSM resource indicates that in excess of 35,000 petajoules of gas may possibly be trapped in the Permian aged coals underlying the 100% owned Galilee Basin permits. These projects are well located with respect to announced infrastructure developments including a number of potential LNG projects at Gladstone in Queensland and warrant an aggressive exploration program.
Click to expand...
 
Hi guys,

What would be really good is instead of listing the CSM/CSG companies prices you list their market caps, resources and cash

That would allow for a really interesting comparison

Just a thought
 
Here's a useful tool from the Qld Gov - web based interactive tenure mapping for petroleum leases, resources mapping etc. I found just recently and have been checking out where some CSG tenements are in relation to others.

You need to have pop-ups allowed for the new GIS window to open.

Takes a bit to get the hang of it - I still havn't managed to search on 'lease holder name'. (looking for Roma leases).

http://www.webgis.nrm.qld.gov.au/webgis/webqmin/default.htm
 
A much nicer 'greenday' for most CSGers today, but my mate QGC getting caned down towards 4.50 for some reason... despite what is looking like a very cheap t/o of Roma and their coveted pl171....
very strange... any ideas there folks?
 
Dukey said:
A much nicer 'greenday' for most CSGers today, but my mate QGC getting caned down towards 4.50 for some reason... despite what is looking like a very cheap t/o of Roma and their coveted pl171....
very strange... any ideas there folks?
Click to expand...

Complete change in strategy it looks.

God damn that company pulls some strange moves.
 
Every day I receive an email from PetroleumNews.net that has links to some interesting articles on CSM. This one:

"No shortage of gas in Australian coal seams

Exclusive for Premium Subscribers
AUSTRALIA’S coal seam methane boom may well be only in its early stages..."

looks particularly interesting but I'm not a Premium Subscriber. Anyone here have access to the whole article?
 
Japanese Osaka Gas looks to be eyeing off some of Australia's coal seam gas reserves.

I suspect this is not a bubble at all. Just some major players see the huge potential that gas will play in our long-term energy needs.

Darwin (Platts)--17Jul2008

Osaka Gas is interested in coal seam gas as a potential source of LNG,
Shinichi Tada, managing director of the Japanese utility's Australian
subsidiary, said Thursday.

"We are interested in any opportunities [for our upstream business], coal seam gas is one possibility," Tada said at the South East Asia Australia Offshore Conference in the northern Australian city of Darwin.

Tada declined to specify which project the company might be eyeing, but mentioned a current tender, an apparent reference to Origin Energy's calls for expressions of interest in its coal seam gas reserves in the northeastern Australia state of Queensland.

The Australian coal seam gas sector has been a hotbed of corporate
activity in recent months, with a series of deals involving international
majors buying into the extensive reserves held by a number of smaller local
players with a view to developing LNG projects.

On May 29, Malaysia's Petronas agreed to pay $2.508 billion for a 40%
stake in Santos' planned coal seam gas-based LNG project in the eastern port
city of Gladstone and, in early June, Shell agreed to pay A$776 million ($759
million) for a 30% stake in Arrow Energy's Queensland coal seam gas reserves.

Origin Energy earlier this month rejected a hostile A$13.7 billion
takeover offer from UK-based BG Group, citing the landmark Petronas-Santos
deal, which it said set a higher benchmark price for its Queensland coal seam
gas assets.

BG's tilt at Origin is designed to access coal seam gas to supply its
proposed A$8 billion Curtis LNG project in Gladstone, which it is pursuing
with local coal seam gas producer Queensland Gas Company.

Subsequent to rebuffing BG, Origin invited proposals, with a bidding
deadline of July 4, from potential partners to help it develop its coal seam
gas reserves. BP, ExxonMobil, Chevron and Petronas were among the oil and gas companies reported to have cast their eyes over Origin's holdings.

Osaka Gas buys 7.3 million mt/year of LNG from 10 countries.
Click to expand...
 
News just on ABC Radio Southern Qld of the discovery of a new coal seam gas basin 100 kms east of Cloncurry called the Millungery Basin.

Discovered by Qld Govt survey team. Similar coal seam gas as that in other basins in Qld, plus geothermal potential. Basin is 300 km long and 50 km wide.

http://www.theaustralian.news.com.au/story/0,25197,24048998-5006786,00.html

QUEENSLAND has struck yet another bonanza with the discovery of an enormous reservoir of zero-emission coal seam gas, 100km east of the outback town of Cloncurry.
Click to expand...

Premier Anna Bligh said the Millungera Basin discovery - which is 300km long and up to 50km wide - was "one of the most exciting resource finds this century'', which could hold clean energy sources for enough low emissions power for the entire northwest region of the state.
Click to expand...

"Other rocks of this age in other basins have significant coal seam gas and water resources, and the granites uncovered signal the potential for new sources of geothermal energy that have the potential to generate one-fifth of Australia's total electricity needs over the next 25 years without producing any carbon dioxide emissions,'' Ms Bligh said.
Click to expand...

Shall be interesting to see who ends up with the lease!

Geologists discovered the new basin, which is believed to be up to 540 million years old, underneath the younger Carpentaria Basin. Further surveys will be conducted to find out the size, shape and depth of the basin in addition to drilling to assess the geothermal potential of the site.

The Government will soon decide which blocks of land will be released for tender for geothermal and gas exploration.
Click to expand...

Stay tuned.
 
CSG article mainly on Shell, but mentions Santos and the Petronas deal


http://www.theaustralian.news.com.au...005200,00.html

"FOREIGN investors appetite for investments in coal seam gas and Australian companies with exposure to the new energy product shows no signs of slowing.

Royal Dutch Shell's global head of power and gas, Linda Cook yesterday said the super major was still looking for new CSG openings in Australia to add to its recently added stake in Arrow Energy.

"We've had that (CSG) on our radar for some years," Ms Cook said during a visit to Australia.

"Our interest remains high in various types of new gas opportunities including tight gas as well as coal seam gas in a number of countries around the world."
 
Anyone have any idea why CSM stocks are plummeting at the moment? For example, Arrow recently announced an increase in their 2P reserves of 81% followed a few days later by an announcement of better than expected flow rates from the Taroom Coals. Sounds like good news to me, but what happens? The SP drops from around $3.30 to $2.90. What's going on? :confused:
 
bassmanpete said:
Anyone have any idea why CSM stocks are plummeting at the moment? For example, Arrow recently announced an increase in their 2P reserves of 81% followed a few days later by an announcement of better than expected flow rates from the Taroom Coals. Sounds like good news to me, but what happens? The SP drops from around $3.30 to $2.90. What's going on? :confused:
Click to expand...


They are not all plummeting. Check out BUL. If they are going down while BUL goes up, think of the potential when the others go up. I sold AOE to buy BUL, chose it for the stock comp on the strength of my convictions after studying the fundamentals.If this deal continues along these lines then it is a triumph of F/A overT/A.
 
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