Coal Seam Gas [Archive] - Page 3

shasta

11-01-2010, 11:23 PM

you are right B.

So far the bigger players have put more and more money on the table.

It's not that Voelte doesn't believe in it, moreso that he has better things to put his money on and he probably does too. However, he did leave the door ajar to invest in the sector in an interview last year.

There are alot of big players without any involvement in CSG. From gas customers to the BHPs and Woodsides. It could become a squeeze.

Interesting to not also that the guy from Karoon gas reckons the transactions in the CSG sector to date have been a very low valuations.

Note of caution though, the market is about 25% from its all time high. Are we really in such a good place?

Not trying to put a dampner on things, but a glut of CSG on the Australian East Coast is only going to benefit those who have the LNG projects with supply contracts to the greater Asia region.

There will be many companies that if they aren't taken over, will end up either, supplying cheap gas to the Queenland domestic grid, or having a stranded resource.

If the LNG gas prices rise internationally due to a bidding war, then synthetic/bio fuels will come into play more.

I believe in the CSG energy, but remember UCG/GTL technology is meant to be more efficient (like what LNC has).

I've looked into a micro cap company (JAT) that may be able to supply the tropical asian regions (Vietnam, Thailand etc) with a bio fuel from the Jatropha tree.

I've added the presentation as it does look at unconventional alternatives in the asian region (which is where all the CSG/LNG is headed)

http://www.stocknessmonster.com/news-item?S=JAT&E=ASX&N=565138

Food for thought :rolleyes:

Disc: Not a shareholder, just looking at ALL alternative energy means

The Big Ease

11-01-2010, 11:31 PM

shasta

11-01-2010, 11:37 PM

the "glut" of csg theory isn't really supported by the action on the ground or the numbers i have come across.

BOW has already had approaches for off-take agreements and has said no, so the demand is definitely there.

The "glut" i mentioned is still in the future, the 1P reserves in the sector aren't sufficient in size yet to even have a market!

AOE is getting there though...

macduffy

12-01-2010, 08:21 AM

An interesting report yesterday to the effect that STO is seeking more time to secure an additional buyer/partner for its Gladstone LNG project. Speculation now is that they may seek to sell down more than previously indicated.

It's not all bad news of course as Petronas has agreed to take two million tonnes pa of the 3.5 mtpa output from the first train and STO has an option to sell another 1 mtpa to them. STO's SP was up a bit on the day.

http://www.theaustralian.com.au/business/santos-seeks-more-time-on-lng-plans-to-secure-a-partner/story-e6frg8zx-1225818205768

The Big Ease

12-01-2010, 08:23 AM

Bartholemeusz writes an update on the scene
http://www.businessspectator.com.au/bs.nsf/Article/The-coal-seam-gas-wars-pd20100111-ZL2N2?OpenDocument&src=sph

Santos Update

http://www.businessspectator.com.au/bs.nsf/Article/Santos-says-in-talks-to-sell-LNG-project-stake-ZKUFK?OpenDocument

macduffy

04-02-2010, 05:30 PM

Here's a presentation today from STO on the market/demand for gas.

Should be in the STO thread but no-one seems interested in them and besides it has implications for all companies involved in the sector.

http://asx.com.au/asxpdf/20100204/pdf/31njn1k0r8bksw.pdf

:cool:

newbietrader

04-02-2010, 06:04 PM

the CSG counters I hold all tank...BUL...WCL..NGE..what a crap...

trackers

04-02-2010, 06:22 PM

drillfix

04-02-2010, 06:25 PM

the CSG counters I hold all tank...BUL...WCL..NGE..what a crap...

Trick is newbietrader, once they start running away from you in the wrong direction, Get Out.

It really depends on what time frame you have invested in these. But these are fragile times atm.

I still hold a small parcel of CGV (clean global energy) which also went to cr@p on me. I sold half my holding as soon as it went the other way on me, so then I am only 50% wrong as a safeguard.

Since then they have gone into a TH and will put out some market sensitive news tomorrow regarding some JV in Victoria or something, dunno, but I may use that depending on what it is to think about getting out, should the opportunity arrive.

Currently the whole sector is up the sh#t, but it wont stay that way forever, so take note of that.

Hey Macduffy, thanks for the link.

soulman

04-02-2010, 06:36 PM

I think all the CSG counter tanked in the last week or two. AOE, BOW, ESG, ICN, MPO included. Only MEL is holding well.

I can't recall NGE having CSG interest.

bermuda

05-02-2010, 10:04 AM

Great presentation Macduffy, very informative...thanks for posting!

Thanks also Macduffy. Just the sort of thing we need to brighten our day as the DOW tanks and oil falls 5%. Cheers. There will be some good buying opportunities coming up.

Coal Seam Gas. Fuel of the Future.

mattyroo

05-02-2010, 01:44 PM

Coal Seam Gas. Fuel of the Future.

You're half right Bermuda..... Gas is the fuel of the future, but it's not CSG. CSG is going to be a small part of it, the development costs of CSG are just too high to see all of the development that was being talked about 6 months ago.

Yet, all the conventional gas to LNG projects are going gangbusters, Wheatstone, Gorgon, Pluto etc.

MrDevine

05-02-2010, 02:12 PM

So Matty are the majors going to write off the investment they've made so far? I think everyone should expect some consolidation in the field. But wouldn't it be cheaper to build infrastructure on land, than in the deep blue sea? I see competition between the two, whatever has lower input costs will win

soulman

05-02-2010, 04:49 PM

I (by risk mangement and luck) exited BOW the other day at $1.255 for a loss. The break below $1.25 on 1st Feb was the reason. My participation in the SPP and selling the lot for $1.39 was a positive gratification and I am sure BOW would be a great buy again soon.

AOE is also starting to look good soon in the low $3's.

drillfix

05-02-2010, 05:13 PM

Looks like CGV has been spared from today's carnage.

Holding steady between 14-15.5c

as too has CXY, strong support at 10c I wonder if this is orchestrated or not.

trackers

06-02-2010, 08:35 AM

New Zealand's Solid Energy to move into CSG?

Coalfields may yield natural gas

Eastern Taranaki's historic coalfields look set to be put to a modern new use – as a source of natural gas.
Coal company Solid Energy is moving into Stratford district this month to drill a series of exploration wells into underground coal seams in the Tahora and Tangarakau areas.
It is hoping enough gas will flow from the wells to warrant potential development of the area as Taranaki's latest commercial gasfield, either to supplement New Zealand's existing gas supplies or as a feedstock for electricity generation.
And even before the drilling starts, the news looks good.
Last winter Solid Energy drilled four similar exploration wells in the Mt Damper and Waitaanga areas further to the north, and the company's annual report says this project has produced "very encouraging" preliminary results.
Not only that, but success achieved by Solid Energy in its coalfields around Huntly underline the potential of coal seam gas as a new energy resource.
Four production wells drilled in the Rotowaru area have been combined to provide enough gas to feed a one-megawatt generator providing electricity to the national grid – New Zealand's first commercial use of coal seam gas.
Initial work at that coalfield has indicated it could contain the gas equivalent of 25 to 200 petajoules of energy.
While this is small when compared with Taranaki's Pohokura gasfield, which is estimated at up to 1200 petajoules, and the Kupe field at up to 300 petajoules, experts are forecasting coal seam gas has the potential to add up to 15 per cent to New Zealand's gas supply.
While use of coal seam gas is new technology in New Zealand, it is already a major contributor to gas supplies in the United States and Australia.
Solid Energy's Christchurch coal seam gas manager, Grant Redma,n said his company saw real potential in Taranaki.
"It's pretty exciting. Of course it is very early days yet, but we know that the coal resource out in eastern Taranaki is very big.
"If the drilling and subsequent testing proves the area's potential as a source of coal seam gas, then activity out there could take a pretty substantial upwards step."
He said the first exploration well would be a "scouting" well to confirm there was coal underground.
"The ultimate test is a production well, because from that we would be able to get a feel for the area's ability to produce gas at commercial rates."

http://www.stuff.co.nz/business/industries/3298993/Coalfields-may-yield-natural-gas

MrDevine

06-02-2010, 09:06 AM

I've been reading and watching this morning BG Groups commentary and outlook for 2010+

Key takeouts are, they are firmly 'underpinned' on the Gladstone plant, Final Investment Decision mid this year. They will expand the facility to a 2 train 8.5mpta plant. Already have 8.3mpta contracted. Expected to begin production in 2014. So as Bermuda says, they'll be looking for all the gas they can get.

So this gives a positive spin on negativity around a LNG glut thats been circulating last couple of weeks. Although a lot could happen between now and then if the DOW goes to ZERO and we all die.

On the strength of that I'm lining up AOE –

newbietrader

06-02-2010, 11:52 AM

I think all the CSG counter tanked in the last week or two. AOE, BOW, ESG, ICN, MPO included. Only MEL is holding well.

I can't recall NGE having CSG interest.

my bad..nge is in my list of red..so i lump it

Dow 10,000 might the bottom line?

The Big Ease

07-02-2010, 12:06 AM

It seems more and more likely that the FID's are a formality

LONDON (Dow Jones)--BG Group PLC (BG.LN) said Friday that it will expand the planned capacity at its Curtis liquefied natural gas project in Queensland, Australia, to 8.5 million metric tons a year, from 7.4 million tons a year previously.

The company said it has already signed supply contracts for 8.3 million tons a year of that capacity and will make a final investment decision on the project in the middle of this year. The reserves of coal seam gas that will supply the plant now stand at 17.3 trillion cubic feet, it said.

BG Group Chief Executive Frank Chapman said the Queensland LNG project will become, "the jewel in the crown of our LNG portfolio...on the doorstep of the world's largest LNG markets."

Chapman said BG has the capital, the expertise and the gas resources to complete the project without needing another partner, although he would consider joining forces with other companies on infrastructure that could be shared, such as a pipeline from the gas-producing region Gladstone on Queensland's coast.

The plant is scheduled to commence production in 2014.

Another major LNG project in which BG has a stake, Nigeria's OKLNG, is currently on the backburner and is unlikely to start up until the second half of this decade, said BG's Chief Financial Officer Ashley Almanza.

BG said its output growth in 2010 will be modest, but will accelerate beyond 2011 close to the top end of the 6% to 8% per annum range. By 2020 the company will be producing around 1.6 million barrels equivalent of oil and gas a day, said Chapman.

percy

10-02-2010, 07:53 AM

Article by Criterion on csg at www.theaustralian.com.au

macduffy

10-02-2010, 08:25 AM

Article by Criterion on csg at www.theaustralian.com.au

Thanks, percy.

Here's a more direct link to Criterion's article.

http://www.theaustralian.com.au/business/wealth/grand-scale-gas-projects-must-put-cards-on-the-table/story-e6frgac6-1225827251327

bermuda

15-02-2010, 08:15 PM

Corporate

15-02-2010, 09:27 PM

Have just read the latest quarterley from this very professional company.

Three things stood out

1. Their Brazil drilling is going exceptionally well. They expect production at 400k barrels per day by 2020.

2. They have invested in USA Shale Gas.

3. The Gladstone CSG/LNG project is described as the "Jewel in their crown".

I was especially pleased with their enthusiasm for Point 3. Gladstone CSG is going to be a lot bigger than some current Aussie journo's give credit to.

This quarterly is worth a read.

Thanks bermuda - the BG quarterly is locked in for reading tomorrow.

I think AOE is the horse to be backing. I am gradually churning through every annoucement for the last three years. Nick Davies is impressive.

Sold 10% of the Arrow international business for $130m (gross this up) - I don't think the market has accredited any value to this.

GLNG -> Curtis Island LNG could put AOE up there with the biggest energy companies in Australia.

Financially dependant

26-02-2010, 07:22 PM

GLNG consolidation process has started..."BG Says Conoco-Origin Agreement May Allow LNG Project Expansion"

http://www.businessweek.com/news/2010-02-25/bg-says-conoco-origin-agreement-may-allow-lng-project-expansion.html

macduffy

26-02-2010, 07:59 PM

bermuda

26-02-2010, 10:51 PM

This review of LNG by Southern Cross Equities makes interesting reading for those interested in CSG.

Disc: Holding AOE BOW STO

http://www.lnglimited.com.au/IRM/Company/ShowPage.aspx?CPID=1439&EID=59292823&PageName=Southern

OK, should really have posted this on the LNG thread but I think it has wider implications across the sector.

Thanks Mac,
Appreciate your posts.

This sector is getting a pasting at the moment for all the wrong reasons. When the 1st FID hits town we have a WORLD FIRST.

Huang Chung

27-02-2010, 01:37 AM

Anyone looked at the potential threat to CSG that shale gas might provide? Tim Threadgold has an article in a recent Eureka Report (which, unfortunately, I can't post). Can't say I'd ever heard of it.

See if you can track it down.

MrDevine

27-02-2010, 08:57 AM

Yeah HC I've read that article. Its one of the 'glut' of gas glut stories which are flying around. There's been a lot of discussion on HotC about this. Shale gas will be great for the US, if they can commercially get it out of the ground. Not sure about how feasible for them to start exporting it. Shale gas has very strong anti-environmental lobby (as CSG will no doubt soon have).

Another interesting dynamic to hit the gas market, is potentially the move away from long term contracts, towards more spot pricing, as for oil. This could have the effect of creating regional gas cartels to measure the spot price

Market seems to moved past how much gas you've got, to how much and what cost can you produce it at. Interesting to note BG says Gladstone gas will be profitable all the way down to $30boe. So I would say CSG market depressed as it gets closer to seeing what plants will get built, when and at what cost.

Interestingly the IEA says gas 'glut' to persist broadly to 2014 and then supply squeeze to kick in, exactly when most GLNG terminals are 'expected' to come on line.

Personally I think its a PR campaign that's been instigated on part of the majors in the hope they can squeeze some cheaper deals out of the market as they ramp up operations. They will get those deals I'd say.

.

Footsie

27-02-2010, 02:22 PM

there are some large net short positions in ESG and a few of the others.

my inkling is that there are some hedge funds in their shorting the sectors. its right across the board. you can see it every day. csg stocks are getting hammered on good news too.
started about 3 weeks ago and BOW, ESG, MEL for example are off 33% already.

this may have further to run, but look out for an almighty short squeeze if we get another takover bid or the market takes off again.

i hope these hedge funds get burnt.....COOKED with gas!

macduffy

27-02-2010, 02:31 PM

Hi, Footsie.

Where does one check net short positions of stocks - as distinct from daily shorts expressed as a percentage of daily transactions?

Footsie

27-02-2010, 08:53 PM

i get it sent to me from a broker

upside_umop

27-02-2010, 08:57 PM

You can also check them here (http://www.asx.com.au/data/Shortsell.txt). The only thing is that its daily and no past history. Mind you, I havent looked that hard...I'm sure the info is available.

evilroyrule

27-02-2010, 10:39 PM

if someone cld take a few mins to explain the ins and outs of this shorting process wld be greatly appreciated

tobo

28-02-2010, 12:21 PM

if someone cld take a few mins to explain the ins and outs of this shorting process wld be greatly appreciated

Hi, can I suggest you start a thread on the Strategies (or Newbies?) section entitled Shorting or Shorting equities on ASX

And do you want a light-weight overview of what it is, or do you want some particualr issues clarified (perhaps from someone actually doing it)...like which can be shorted, what to look out for. [I don't know much about it myself - I was under the impression that only some large caps can be shorted, and don't know if ASB Securities will let you do it.]

macduffy

28-02-2010, 03:02 PM

You can also check them here (http://www.asx.com.au/data/Shortsell.txt). The only thing is that its daily and no past history. Mind you, I havent looked that hard...I'm sure the info is available.

I apologise for continuing to rattle on about shorting but my query was originally about shorting BOW.

I regularly check the site you mention, u u , but what I'm after is something that shows current net short positions.

Any ideas out there?

I promise not to pursue this sidetrack any further!

Footsie

28-02-2010, 10:04 PM

mac

you can get the data. the asx provides it to brokers.

drillfix

01-03-2010, 12:59 AM

macduffy

01-03-2010, 08:36 AM

This is true Footsie,

Here it is here:
http://www.asx.com.au/data/shortsell.txt

Bare in mind that each stock in the list will only have X quantity of stocks available to short sellers, which means only so many short positions with that X amount of stock can be shorted and once they are all taken up on any given day, then you just cant short because you choose to, you need to be on the Bus with you position.

Hope this helps.

ps: can you imagine the $dollar$ recently that has been made on TOL, wow wow voom voom :P

I'm afraid that's not so, drillfix.

These are daily short sales - actual numbers and also expressed as a percentage of the total day's sales of each stock. They do not show the total outstanding short position in any stock.

I'll take Footsie's advice and speak nicely to my broker!

Thanks all.

drillfix

01-03-2010, 12:22 PM

Hi Macduff,

Fair enough, I believe I have posted the wrong link, I do know there is another TXT file that gets published though, I just dont know where atm :P

Let us know what you find out as I would be interested to see.

The Big Ease

03-03-2010, 10:11 AM

http://www.smh.com.au/business/gas-will-drive-coal-from-its-throne-20100302-pgbw.html

The Resources and Energy Minister, Martin Ferguson, said the future looked bright for Australia's gas projects but declining oil production would test the transport sector.

"The two big findings are the extraordinary potential of coal seam methane and unconventional gas resources, and for the first time we can see just how extensive Australia's renewable energy resources are,'' he said. "The assessment … shows our coal and gas resources can support energy demand for many decades … But, with almost every sector of the Australian economy dependent on oil as the major transport fuel, dependence [on oil imports] is likely to increase if we don't find more oil resources or alternatives."

macduffy

10-03-2010, 08:37 AM

The Australian reckons that AGL's 50% of the Moranbah gas reserves may be next on Shell/Petrochina's shopping list, if the bid for AOE succeeds.

http://www.theaustralian.com.au/business/agl-next-on-gas-radar-for-shell-and-petrochina/story-e6frg8zx-1225838885956

trackers

10-03-2010, 09:18 AM

Another interesting article today.. I'm in two minds about it..

Arrow bid punctures gas bubble

THERE'S a disconnect between the offer Shell and its partner, PetroChina, have made for the Queensland coal seam gas company Arrow Energy and the prices that were paid in the past for similar coal seam reserves owned by Arrow, Santos, Origin and other Australian groups.

The $3.2 billion offer implies a 60¢-a-gigajoule value for Arrow's proven, probable and possible coal gas reserves. That's about 48 per cent less than big foreign gas groups including Malaysia's Petronas, Britain's BG group and ConocoPhillips of the US paid on average during the coal seam land-rush in 2008, and about 22 per cent less than Shell paid for a 30 per cent stake in Arrow's tenements in the same year.

The bid, and Arrow's decision to take it seriously despite the price discount, reflect the much more complicated outlook for gas in the wake of the global financial crisis, and after the development of technology that is capable of doubling the world's gas reserves.

There is an awful lot of gas in the ground, enough perhaps to break the nexus between gas prices and oil prices. The peak oil argument that sees oil prices rising inexorably as producers fail to bring new production on stream fast enough and cheaply enough to replace diminishing reserves simply does not apply, and that knowledge both impels the $3.2 billion offer Shell and PetroChina have launched, and dictates that Arrow take it seriously.

http://www.smh.com.au/business/arrow-bid-punctures-gas-bubble-20100309-pvwf.html

percy

17-03-2010, 09:10 AM

article by tim boreham,Criterion in www.theaustralian.com.au business headed coalseam gas thrills keep on coming.

macduffy

19-03-2010, 08:24 AM

A report that Queensland to use CSG to fuel trucks.

http://www.theaustralian.com.au/news/nation/coal-seam-gas-to-drive-trucks/story-e6frg6nf-1225842551478

and

http://www.theaustralian.com.au/business/mining-energy/qgc-boc-sign-100m-chinchilla-gas-agreement/story-e6frg9ef-1225842245507

STRAT

22-03-2010, 02:18 PM

Most CSG stocks getting a hard time today.

The AOE deal and the MEO/CUE thing the catalyst perhaps?

The Big Ease

24-03-2010, 08:21 AM

http://www.businessspectator.com.au/bs.nsf/Article/BG-Group-set-to-sign-LNG-deal-with-CNOOC-report-sa-pd20100324-3TNU3?OpenDocument&src=hp5

All about the CSG...even bigger than gorgon!

Wow! This should put paid to all the talk about FID's and gas gluts.

http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article7073276.ece

Foreign supply key to future demand

Natural gas may be the fastest-growing fuel in China’s energy mix, but it is not advancing quickly enough to meet demand (Robin Pagnamenta writes).

This winter, the Government of Hangzhou, in the country’s east, was forced to cut all gas supplies to entertainment businesses to guarantee supplies to the city’s 410,000 households. It also reduced supplies to hotels, offices and shopping malls by 20 per cent.

There were similar scenes in Chongqing in the country’s southwest as China struggled with acute shortages after severe winter weather.

Surging Chinese demand for natural gas is unlikely to end soon. With its economy powering ahead, consumption this year is expected to reach 110 billion cubic metres, up more than 37 per cent from 80 billion cubic metres only two years ago. By 2020, it is expected to need at least 200 billion cubic metres a year.

These growth rates are offering huge commercial opportunities for foreign oil companies and Australia is emerging as a pivotal player. Vast deposits of coal seam gas in Queensland, as well as large conventional gas reserves off the coast of Western Australia, are viewed as critical to meeting future demand.

Official pressure is contributing to demand. Beijing is concerned about reliance on coal and is trying to develop alternatives to cut emissions and improve air quality. It has also begun a programme to convert millions of cars to run on natural gas as well as oil.

drillfix

25-03-2010, 01:50 AM

Yep, definitely some movement at the station here today, anybody got a chart of the sector or index on this one?

Which actual index is CSG under, so many companies seem to be under Energy but then some are under other sectors, what's with that?

I think there should be rules to company status of what Industry and Sector they are in.

Meaning, should a company name change and change in direction, they should have 7 business days to comply with the Amendment of that Sector.

Other wise there are companies listed in sectors so they can easily ride the coat tail of it and not care what results they get or deliver to shareholders JUST so they can show some performance.

Has anybody else picked up on this? Well they do exist. And something should be done about this, an Soon, IMO

peat

25-03-2010, 03:26 PM

I guess everyone knows that Woodside is rumoured to be bidding for Santos....

mattyroo

25-03-2010, 04:23 PM

I guess everyone knows that Woodside is rumoured to be bidding for Santos....

Rumour is all it is. Voelte will never bid for anyone in the CSG sector, and as predicted, he came out and rubbished the rumour today.

macduffy

25-03-2010, 04:33 PM

Rumour is all it is. Voelte will never bid for anyone in the CSG sector, and as predicted, he came out and rubbished the rumour today.

Besides which, STO has been regularly rumoured to be taken over ever since the SA govt removed the 15% shareholding cap a couple of years ago.

I guess that one day it'll be true!

denpal

26-03-2010, 05:53 PM

Anyone see OBL bolt +250% today? CSG project near Broome, MC too small and DT's all over it. Unreal turnover 4x FPO's. I'll stick to NSE for Canning Basin CSG upside they have a massive area.

Huang Chung

26-03-2010, 09:27 PM

I see someone on HC has posted that Alan Kohler will be discussing CSG in Qld on the Inside Business program on the ABC on Sunday. Probably a must see for CSG diehards. I presume they will post the segment on their website later in the day.

drillfix

26-03-2010, 09:33 PM

Anyone see OBL bolt +250% today? CSG project near Broome, MC too small and DT's all over it. Unreal turnover 4x FPO's. I'll stick to NSE for Canning Basin CSG upside they have a massive area.

How could we not see it, was most entertaining denpal.

OBL Daily >>> http://i41.tinypic.com/27yvjev.png

HC, what time exactly does that come on? Think I will watch it if I remember :P

Huang Chung

26-03-2010, 09:56 PM

I think its 10.00am Qld time...I'll probably be watching the AGP telecast.

Huang Chung

28-03-2010, 04:38 PM

drillfix

28-03-2010, 07:07 PM

Inside Business program from this morning....3 interviews related to CSG.

All pretty positive.

http://www.abc.net.au/insidebusiness/content/2010/s2858134.htm
http://www.abc.net.au/insidebusiness/content/2010/s2858136.htm
http://www.abc.net.au/insidebusiness/content/2010/s2858138.htm

Hi HC, yep watched that, it was positive indeed, though not sure how the Junior part of the sector will pan out, obviously there will be some coat tail riding going on but to what extent?

Are you yourself holding much CSG stocks or UCG stocks for that matter?

Huang Chung

28-03-2010, 09:09 PM

Not holding any O&G ATM Drilly. Generally more comfortable with mining stocks than O&G ones.

drillfix

29-03-2010, 12:17 PM

No worries there HC, what is your take on the 10am sunday business articles, besides being positive?

The Big Ease

05-04-2010, 12:11 PM

In another twist, the New South Wales government has indicated it may throw its hat into the LNG ring, with similar reserves of coal seam methane gas in the Gunneday and Sydney Basin creating speculation that supply of LNG will outweigh the demand.

http://www.gladstoneobserver.com.au/story/2010/04/05/group-signs-gas-deal-with-japan-bg-group/

this could be interesting for a few companies...

Huang Chung

05-04-2010, 09:10 PM

Courtesy Gods Broker on HC..

Petroleum News

Monday, 29 March 2010

THE Western Australia government is keeping a close eye on shale gas developments in the state in the hope that these could prove an attractive addition to its gas supply.

Mines and Petroleum Minister Norman Moore said plans by AWE to drill the Woodada Deep-1 coring well in the onshore Perth Basin next month could help create a new industry and provide greater certainty for existing businesses in WA.

The drilling has potential to spark a new industry which may significantly increase WAs economic growth and enhance its reputation as an international resources hub.

Previously considered unviable, shale gas exploration and production is now more prospective due to improved horizontal drilling and fracturing techniques.

AWE had previously flagged the shales in the Perth Basin appeared to be comparable with successful shale gas fields in North America.

With the US fields expected to increase future US gas supplies by a further 100 years, Moore said the WA fields, if commercial, could supply the states domestic gas market with a new source of cheap, conveniently situated reserves.

This may be another arrow in WAs alternative energy sources along with the already available options such as tight gas and geothermal sources, Moore added.

AWEs Woodada Deep coring program is testing the shale gas potential of the Woodada licence which adjoins the southern boundary of Norwests EP413 permit where shales are up to 1000m thick.

Other players are also keen to jump on the shale gas bandwagon with fellow Perth Basin explorer Norwest Energy keeping a close eye on AWEs operations, New Standard Energy about to accelerate work in the Canning Basin, Beach Energy poised to evaluate the potential of its shales in the Cooper Basin and Exoma talking up the Toolebuc shale in Queenslands Galilee Basin.

The Big Ease

06-04-2010, 06:45 AM

http://www.couriermail.com.au/business/lng-demand-to-bring-steady-long-term-economic-boost-for-queensland/story-e6freqmx-1225850052159

THE amount of gas development across Queensland's Bowen and Surat basins, if the four major liquefied natural gas plants planned for Gladstone all proceed, will be huge, a Brisbane conference has been told.

Each LNG proposal would cost something like $US15 billion ($A16.3 billion), taking into account spending on "two train" Gladstone plants and the "up-stream" development of the gas wells that would be needed to feed them.

Coal seam gas well development is a much less intrusive activity than, say, open-cut coal mining. And over the life of an LNG plant, gas field development will continue, year in year out, providing a steady long-term economic boost, and jobs - hopefully balanced by an increase in social infrastructure - to communities around the gas fields, and further afield.

Grahame Baker, a long-time industry consultant with RLMS (Resource and Land Management Services), told the CSG 2010 conference in Brisbane last week that for each one million tonnes a year of LNG capacity that was built, 65 petajoules of gas would be required - something like 60PJ as feed stock and 5PJ to run the LNG plant

If only 10 million tonnes of LNG capacity were built, he said - and that is less than the most advanced proponent, BG Group, is planning - some 650PJ a year of gas would be required.

That would double demand for gas in eastern Australia from its current level. And Mr Baker said producing that extra 650PJ a year would require 4900 gas wells, covering a combined area of 6150sq km.

If LNG capacity at Gladstone was to reach 28 million tonnes a year, requiring some 1820PJ, 13,700 wells would be needed, Mr Baker said, taking up an area of 17,150sq km.

At 40 million tonnes of LNG a year, the level that could be reached if three of the four projects went ahead and expanded to their planned maximum capacities of three or four LNG processing trains each, 19,600 production wells would be needed, which would take up 24,500sq km.

Meanwhile, Mr Baker didn't have any problem with the fact that CSG had not yet been used, anywhere in the world, as an LNG feedstock.

Despite that, he said CSG was generally very low in carbon dioxide content, which should reduce the capital and operating costs of the Gladstone plants, when compared with plants in Western Australia that have to strip CO2 from their product and capture it and reinject it to sequester the greenhouse gas.

Mr Baker pointed out that the Kenai LNG plant in Alaska had been using a "dry gas, identical to CSG" to produce LNG for export to Japan for 40 years.

The so-called Conoco-Phillips "optimised cascade process for LNG production, which has been selected by three of the proposed Gladstone projects, was initially developed for the Kenai plant.

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

Customers want it.
The majors are investing tens of billions.
It is real.
It is huge!

macduffy

18-04-2010, 03:25 PM

I'm told that there was a recent article in the AFR to the effect that the ASX is reviewing the rules for O&G companies in claiming reserve/resource numbers. Unlike mineral companies, it seems that O&G co's don't need to have their claims verified by qualified experts and that this is causing dissension, particularly in the case of some CSG companies where there seems to be differences in definition. BPT's Hector Gordon is apparently one of the critics.

Can anyone with access to the AFR clarify/confirm the position?

Huang Chung

18-04-2010, 05:41 PM

In the last week, I've also noticed a distinct rise in the number of stories about disgruntled land owners, polluted water and all that kind of stuff. Probably seen more on this in the past week than in the past 2 years. For holders of CSG stocks, definitely worth keeping tabs on these simmering tensions.

Huang Chung

02-05-2010, 05:14 PM

From today's Landline program on the ABC:

http://www.abc.net.au/landline/content/2010/s2888078.htm

bermuda

02-05-2010, 06:35 PM

From today's Landline program on the ABC:

http://www.abc.net.au/landline/content/2010/s2888078.htm

Thanks for that. It is becoming an issue. I have been following it generally for some time but this is the first time I have seen this detail. It will get solved, the holes will be drilled and CSG will put Queensland on the world business map.

mattyroo

02-05-2010, 08:57 PM

bermuda

02-05-2010, 09:20 PM

I have been saying this is the one of the major issues facing the CSG companies for sometime.... some have not been listening. The other major issue is the electrical grid and costs of such, that is required to be installed.

Most players in the industry are aware of these problems. They are real and will be dealt with. In the meantime the CSG machine will roll on to ever increasing importance. A fair and equitable compensation agreement needs to be drafted by the appropriate authorities/Government.

Huang Chung

02-05-2010, 10:01 PM

The good folk from Tara seem to be organising a bit of resistance as well....

http://tarablockies.com/

bermuda

02-05-2010, 10:30 PM

The good folk from Tara seem to be organising a bit of resistance as well....

http://tarablockies.com/

HC,
The Tara problems in America are completely unrelated to CSG in Australia. The USA problems are related to the injection of fraccing fluids into the well potentially ruining aquifiers . CSG wells, by and large do not involve injecting fraccing fluids down a well. On the contrary, it is all about dealing with the water as it comes out.

Huang Chung

02-05-2010, 10:35 PM

Tara is 300k west of Brisbane.

Just another example of the local concern/resistance to CSG that seems to be gathering pace....not commenting on whether their arguments are valid or even relevant.

Huang Chung

02-05-2010, 10:52 PM

Here is another article on the Tara situation.

http://www.theaustralian.com.au/news/nation/locals-do-their-block-as-big-gas-moves-into-q/story-e6frg6nf-1225851134644

Apparently, there were no leaks detected:

http://www.dme.qld.gov.au/media_centre.cfm?item=869.00

bermuda

02-05-2010, 11:07 PM

Tara is 300k west of Brisbane.

Just another example of the local concern/resistance to CSG that seems to be gathering pace....not commenting on whether their arguments are valid or even relevant.

Thanks for the tarablockies site. I was referring to the Tara group's review of the American problem. Re "Coca Cola Fraccing".

Loved the comment that the 'blockies ' didnt want the CSG boys' there because they interferred with their marijuana crops. This problem is real and should be dealt fairly by the appropriate authirities.

macduffy

06-05-2010, 08:04 AM

Here's an endorsement for CSG.

Shell confirms their bid for AOE.

http://www.theaustralian.com.au/business/mining-energy/no-change-344bn-arrow-bid-shell/story-e6frg9ef-1225862602383

Huang Chung

09-05-2010, 04:54 PM

Part 2 of Landline's report on CSG:

http://www.abc.net.au/landline/content/2010/s2894275.htm

bermuda

24-05-2010, 12:15 PM

ESG enters into a MOU to supply Japanese company's ex Newcastle. This is totally consistent with the presentation David Casey gave at the O&G conference in Sydney back in late April.

This is BIG news for the CSG industry.

Serpie

24-05-2010, 12:25 PM

It's getting closer Super B!

shasta

26-05-2010, 03:53 PM

It's getting closer Super B!

ORG - Australia Pacific LNG launches Gladstone Project Centre

http://www.stocknessmonster.com/news-item?S=ORG&E=ASX&N=593803

The first of many big anns re LNG?

Lebowski

11-06-2010, 05:35 PM

http://www.theaustralian.com.au/business/mining-energy/santos-talks-gas-deal-with-sinopec/story-e6frg9ef-1225878161549

More consolidation coming up ?

macduffy

11-06-2010, 08:14 PM

http://www.theaustralian.com.au/business/mining-energy/santos-talks-gas-deal-with-sinopec/story-e6frg9ef-1225878161549

More consolidation coming up ?

Not exactly consolidation but rather an offlaying of part of Santos' interest - and increased confidence that the project will go ahead - if the deal comes off.

Huang Chung

19-06-2010, 04:39 PM

More angst about CSG on the Darling Downs.

http://www.abc.net.au/news/stories/2010/06/18/2931187.htm

macduffy

02-07-2010, 08:26 AM

Coal Seam Gas company shareholders will be hoping The Australian has got this right!

http://www.theaustralian.com.au/business/big-breaks-for-gas-giants-as-peace-reigns/story-e6frg8zx-1225886902661

Disc: Holding AOE, BOW and STO.

mattyroo

09-07-2010, 11:24 AM

Another interesting article in the Australian today:

http://www.theaustralian.com.au/business/santos-shell-in-talks-over-gladstone-lng-project/story-e6frg8zx-1225889580922

I wonder if all these big players are going to get together, like I have predicted for some time now, whether this will be negative or positive for the smaller players, I have conflicting opinions. What do others think?

macduffy

09-07-2010, 04:53 PM

Well, the market likes the sector again with the csg companies up strongly, STO 8%, BOW 6% are the one's I'm interested in.

Consolidation of the projects to one or two plants would enhance the probability of them proceeding and improve prospects of a market (or takeover) for the smaller players. So I see this as positive although there will be some who fear that such companies will be taken out prematurely. I'm happy to take that risk.

crooky

09-07-2010, 09:27 PM

Just the catalyst we needed macduffy, also read yesterday AJL in JV with Xtremecoil do do a new rig that speeds up well drilling by 200%.

macduffy

09-07-2010, 09:30 PM

John Durie reports for The Australian on possible consolidation in the industry.

http://www.theaustralian.com.au/business/opinion/david-knox-ready-to-offer-gladstone-equity/story-e6frg9io-1225889819583

macduffy

14-07-2010, 04:17 PM

Further progress in the sector as AOE shareholders approve the acquisition by Shell and the creation of Dart.

http://www.asx.com.au/asxpdf/20100714/pdf/31rb55swm47mkp.pdf

trackers

16-08-2010, 08:50 AM

It's a gas as NSW industry comes of age

http://www.smh.com.au/business/its-a-gas-as-nsw-industry-comes-of-age-20100815-1257u.html

trackers

22-09-2010, 08:22 AM

Coal Seam Gas makes stuff.co.nz.... Govt pimping out CSG as clean way utilise NZ's coal

http://www.stuff.co.nz/business/4152678/Coal-seam-gas-the-next-great-energy-source

Turning New Zealand's vast coal and methane hydrate deposits into transport and other fuels "defines the answer to our problem" as a nation, says the chief executive of state-owned coal miner Solid Energy, Don Elder.
Addressing the bi-ennial Petroleum Conference in Auckland, Dr Elder said New Zealand's natural resources were "dominated by coal", while similar energy potential existed in deep-sea methane hydrate deposits for which there was currently no process for commercialisation.
Energy and Resources Minister Gerry Brownlee ramped the potential for as much as 800 trillion cubic feet of methane hydrates to be accessed more easily than similar deposits elsewhere in the world, for use in transport fuels and natural gas.
One presentation at the conference yesterday outlined the current state of play in undersea methane hydrates extraction, with first experimental efforts to do so scheduled for 2011.
Dr Elder said Solid Energy's coal mining activities were extracting about 120 Petajoules of energy annually at present, but that the company had "aggressive" plans to more than double that within a decade.
"That's around $2 billion to $4 billion in new export revenue at today's prices, or $5 billion to $10 billion at 2008 prices, which are likely to be back."
Solid Energy plans to produce natural gas from lignite coal for use in urea production for fertiliser, diesel production, and for clean-burning solid fuel briquettes.
Unconventional petroleum represented just 3 per cent of the world market today, but it would have to increase by as much as 60 per cent, since coal represented 80 per cent of the world's primary energy outside the Middle East, Dr Elder said.
Solid Energy had secured reserves equivalent to 35,000PJs – equivalent to eight times the size of the global scale Maui gas field.
If all New Zealand's coal and methane hydrate resources were capable of being exploited, they could be worth a total of between $5 trillion and $20t, he suggested.
However, extraction of underground coal-seam gas was "the next great energy source", he said. "It will be bigger than nuclear power, and we are positioning at the front of the energy curve."
Dr Elder dodged a question about whether he thought Solid Energy should be privatised, following a moment of controversy the day before when the chief executive of New Zealand Oil & Gas suggested that the Government should sell its energy assets to private buyers rather than have taxpayers take the risk of such developments.
Yesterday's presentations concentrated heavily on new analysis of seismic soundings taken in four of New Zealand's 15 potential petroleum basins – the Great South Basin south of Invercargill, the Canterbury Basin off Christchurch where Origin Energy and Anadarko are to drill two exploration wells, Northland's Reinga Basin, and the Pegasus Basin, to the east of Cook Strait.
Geologists presenting the results talked up the potential for all to have oil and gas-bearing structures, with evidence of a potential "Maui-like structure" identified in the Reinga Basin.

STRAT

22-09-2010, 09:23 AM

Hi Trackers, Oiler and Super B

What does this mean for LMP ( now LME ) if anything?

http://www.sharetrader.co.nz/showthread.php?4443-LMP/page23

Oiler

22-09-2010, 06:55 PM

Hi Trackers, Oiler and Super B

What does this mean for LMP ( now LME ) if anything?

http://www.sharetrader.co.nz/showthread.php?4443-LMP/page23

STRAT if I understand your question correctly then I hope this helps.

LMP was the Oil and Gas group and NZX/ASX listed. L & M has been around for many years and they had a privately held "Coal Group" which held very large acreages of potential CSG in Southland. Earlier this year the coal seam gas group was rolled into LMP.

To better there market identification they changed there name to LME which is a bit more all encompassing. (petroleum,CSG and coal)
LME have there fingers in quite a few pies and are in a friendly competition with Solid Energy to get there CSG commercialised.
I am backing the public company (LME) to be first to commercialise CSG versus the SOE.

LME are quietly getting all there ducks in a row and the only problem I see going forward is that we (NZ) are an island and have no neighbours to sell our gas/electricity to plus have a small domestic market to sell gas. The majors even have trouble selling there gas :confused: that said LME has chosen the right approach (I think) by developing there CSG to generate power for the Fonterras and Tiwai and also taking in a trucking company partner to use the gas as they ramp up production. In the meantime they will make some money as they prove up there reserves.

Where to for LME......certainly worth a punt.

macduffy

23-09-2010, 08:27 AM

Coal seam gas to be mined around Sydney?

http://www.smh.com.au/environment/coverup-secret-plans-to-mine-gas-20100922-15n0p.html

and

http://www.apexenergy.com.au/burragorang-region/

The Big Ease

24-09-2010, 05:07 AM

bermuda

24-09-2010, 10:01 AM

http://www.smh.com.au/business/chindia--you-aint-seen-nuthin-yet-20100923-15o2v.html

michael pascoe with a very good article about "Chindia".

It's just about to get started....and they will need lots of!

Big Easy,
Thanks for posting that link. It is exactly how I think. It is time for the world's economists to ditch their attachment to the West and start focussing on the bigger picture. Gas, in all forms , is going to be in huge demand. Chindia rules. Our schools should be making Mandarin compulsory.

The Big Ease

24-09-2010, 11:46 AM

I agree, after they begin teaching English properly! ;)

macduffy

02-10-2010, 06:10 PM

Good news for the csg sector.

http://www.theaustralian.com.au/business/lng-projects-spared-in-tax-plan/story-e6frg8zx-1225933018691

macduffy

04-10-2010, 07:57 AM

...... but now a delay to a decision from the federal Environment Minister.

http://www.theaustralian.com.au/business/latest-ministerial-delay-threatens-csg-deadlines/story-e6frg8zx-1225933542957

STRAT

06-10-2010, 03:47 PM

What do you fellas make of this? :(

Gloomy forecast for LNG projects

Mathew Murphy

October 6, 2010
[/URL]

ORIGIN ENERGY and Woodside Petroleum are unlikely to deliver planned multibillion-dollar liquefied natural gas projects on time, according to an industry report, amid a slump in LNG prices and signs of oversupply.
In a comprehensive report on the Australian LNG sector, Citi, led by the analyst Mark Greenwood, says it is now ''more realistic'' that Origin and ConocoPhillips's Gladstone APLNG project will produce only half its initial expected output, and it has downgraded Woodside to a ''sell'' based on its big LNG portfolio and the rising cost of its projects.
Asian buyers are indicating they have nearly had their fill of LNG amid a flurry of multibillion-dollar offtake agreements struck in the past two years.
Advertisement: Story continues below
''New LNG contracts are being signed at increasing discounts to oil parity,'' Mr Greenwood said.
''There is an abundance of proposed capacity and numerous LNG projects competing head to head for LNG contracts. Another sign that the market is shifting in favour of buyers is the increasing equity stakes provided to foundation customers that sign up for LNG offtake, a feature that was not seen in 2007 or early 2008.''
The report also predicts:
Origin's APLNG project will miss a final investment decision this year amid growing difficulty in securing a buyer and will focus on developing one train of LNG initially instead of two.
Woodside will miss its 2012 timeline for a final investment decision for the Browse gas hub project at James Price Point in the Kimberley, and estimates that the West Australian government's compulsory acquisition process could take two years.
The Environment Minister, Tony Burke, will grant environmental approval this month for BG Group and Santos's Gladstone LNG projects, with the companies almost certain to produce a positive final investment decision.
Timor could allow Woodside's Sunrise project being developed through floating LNG if the ''Australian government could broker a deal whereby jobs were created via an asylum seeker detention centre located in Timor''.
Shell will try to arrange an asset deal with Nexus Energy to include the Crux gas reserves in its Prelude LNG project.
However, the biggest question marks in Australia's LNG market hung over Origin and Woodside, Mr Greenwood said.
The most likely buyers from Origin's APLNG project, Japan's Tepco and Tokyo Gas, had since signed deals with Chevron's Wheatstone and BG's Queensland Curtis LNG, leaving Origin well behind its counterparts in Gladstone.
Woodside shares dropped 49¢ to $44.48, while Origin's fell 1¢ to $15.94.
Origin said it had not moved its focus away from a two-train project, telling BusinessDay it was ''not a matter that has been considered by the Australia Pacific LNG joint venture''.
Woodside declined to comment.

[url]http://www.smh.com.au/business/gloomy-forecast-for-lng-projects-20101005-16680.html (http://www.fairfax.com.au/ads-by-google.html)

Oiler

06-10-2010, 07:06 PM

What do you fellas make of this? :(

Gloomy forecast for LNG projects

Mathew Murphy

October 6, 2010

ORIGIN ENERGY and Woodside Petroleum are unlikely to deliver planned multibillion-dollar liquefied natural gas projects on time, according to an industry report, amid a slump in LNG prices and signs of oversupply.
In a comprehensive report on the Australian LNG sector, Citi, led by the analyst Mark Greenwood, says it is now ''more realistic'' that Origin and ConocoPhillips's Gladstone APLNG project will produce only half its initial expected output, and it has downgraded Woodside to a ''sell'' based on its big LNG portfolio and the rising cost of its projects.
Asian buyers are indicating they have nearly had their fill of LNG amid a flurry of multibillion-dollar offtake agreements struck in the past two years.
Advertisement: Story continues below
''New LNG contracts are being signed at increasing discounts to oil parity,'' Mr Greenwood said.
''There is an abundance of proposed capacity and numerous LNG projects competing head to head for LNG contracts. Another sign that the market is shifting in favour of buyers is the increasing equity stakes provided to foundation customers that sign up for LNG offtake, a feature that was not seen in 2007 or early 2008.''
The report also predicts:
Origin's APLNG project will miss a final investment decision this year amid growing difficulty in securing a buyer and will focus on developing one train of LNG initially instead of two.
Woodside will miss its 2012 timeline for a final investment decision for the Browse gas hub project at James Price Point in the Kimberley, and estimates that the West Australian government's compulsory acquisition process could take two years.
The Environment Minister, Tony Burke, will grant environmental approval this month for BG Group and Santos's Gladstone LNG projects, with the companies almost certain to produce a positive final investment decision.
Timor could allow Woodside's Sunrise project being developed through floating LNG if the ''Australian government could broker a deal whereby jobs were created via an asylum seeker detention centre located in Timor''.
Shell will try to arrange an asset deal with Nexus Energy to include the Crux gas reserves in its Prelude LNG project.
However, the biggest question marks in Australia's LNG market hung over Origin and Woodside, Mr Greenwood said.
The most likely buyers from Origin's APLNG project, Japan's Tepco and Tokyo Gas, had since signed deals with Chevron's Wheatstone and BG's Queensland Curtis LNG, leaving Origin well behind its counterparts in Gladstone.
Woodside shares dropped 49¢ to $44.48, while Origin's fell 1¢ to $15.94.
Origin said it had not moved its focus away from a two-train project, telling BusinessDay it was ''not a matter that has been considered by the Australia Pacific LNG joint venture''.
Woodside declined to comment.

http://www.smh.com.au/business/gloomy-forecast-for-lng-projects-20101005-16680.html

STRAT no real surprise here. We have seen FID's slip and continue to slip. That doesnt mean that any of CSG to LNG companies are potentially going to abandon there projects, they will continue to slowly develop there gas supplies and tie up off take agreements.
There certainly needs to be some rationalisation of the LNG facilities in Gladstone. Time to forget the egos and start talking.

There is a lot of uncertainty in the LNG market right now but that could change in heartbeat, but who knows when that will be. If we knew that then we would all get multi baggers :t_up:

STRAT

06-10-2010, 07:23 PM

STRAT no real surprise here. We have seen FID's slip and continue to slip. That doesnt mean that any of CSG to LNG companies are potentially going to abandon there projects, they will continue to slowly develop there gas supplies and tie up off take agreements.
There certainly needs to be some rationalisation of the LNG facilities in Gladstone. Time to forget the egos and start talking.

There is a lot of uncertainty in the LNG market right now but that could change in heartbeat, but who knows when that will be. If we knew that then we would all get multi baggers :t_up:Thanks Oiler. So no need to dump 1/2 of my portfolio tomorrow then :scared:

Oiler

07-10-2010, 05:31 AM

Thanks Oiler. So no need to dump 1/2 of my portfolio tomorrow then :scared:

Thats a big call STRAT.

As an investor, I am holding but as a trader only you can decide that.;)

STRAT

07-10-2010, 08:03 AM

Thats a big call STRAT.

As an investor, I am holding but as a trader only you can decide that.;)
haha
If they trend towards the floor they are out the door.

trackers

19-10-2010, 08:35 AM

http://www.smh.com.au/business/list-reveals-toxic-chemicals-used-in-coal-seam-mining-20101018-16qt5.html

List reveals toxic chemicals used in coal seam mining

Joel Tozer and Ben Cubby

October 19, 2010
AUSTRALIAN mining companies are using highly toxic chemicals to extract coal seam gas during the controversial process known as ''fracking'', documents obtained by the Herald show.
A government list of 36 chemicals used in coal seam gas extraction in Australia includes hydrochloric and acetic acid, and napthalene- an ingredient once used in napalm as well as more mundane items such as mothballs - and many other hydrocarbons.
Fracking, or hydraulic fracturing, involves injecting a mixture of water, sand and chemicals at high pressure underground in order to fracture rock formations and release coal seam gas.
Advertisement: Story continues below
The proposed use of fracking near watercourses, including a plan to deploy fracking next to Warragamba Dam, has fed concerns that drinking water could be contaminated if gas extraction goes ahead.
The Australian Petroleum Production and Exploration Association, which represents coal seam gas extraction applicants, said the process has been used for many years and is completely safe.
But the Queensland government introduced legislation last week to ban some chemicals that can be used during fracking, including BTEX, a mixture that contains highly toxic benzene.
Last month in the US, the Environmental Protection Agency asked nine companies that use fracking to disclose the ingredients of the chemicals they use, some of which are regarded as trade secrets.
One of the companies, BJ Services, is a supplier of fracking chemicals to coal seam gas operators in Australia.
A study by the EPA in 2004 found no ''confirmed evidence'' fracking fluids have contaminated drinking water, but new research prompted it to reopen its inquiries.

Looks like scaremongering to me, but not a good look regardless.. Thoughts? I also note that STO has been one of the worst performers in the ASX50 lately

STRAT

19-10-2010, 09:07 AM

http://www.smh.com.au/business/list-reveals-toxic-chemicals-used-in-coal-seam-mining-20101018-16qt5.html

Looks like scaremongering to me, but not a good look regardless.. Thoughts? I also note that STO has been one of the worst performers in the ASX50 latelyYou may be right Trackers but this kind of stuff always comes up when big money is involved. The truth usually ends up being somewhere in the middle. Personally I feel if the environment is being damaged then another way should be found. The usual is more along the lines of taking the cheapest option and the local people usually end up getting Fracked over.

Financially dependant

19-10-2010, 06:07 PM

Does the 22nd October seem like the most important day CSG has had so far??? Or am I getting paranoid......

Oiler

19-10-2010, 06:42 PM

You may be right Trackers but this kind of stuff always comes up when big money is involved. The truth usually ends up being somewhere in the middle. Personally I feel if the environment is being damaged then another way should be found. The usual is more along the lines of taking the cheapest option and the local people usually end up getting Fracked over.

STRAT/Trackers I tend to agree with you, that this is scaremongering. We are talking CSG which is all about dewatering rather than fraccing so I am not sure where these people are coming from. CSG water is a problem for some companies as to how they handle it. Others use RO and sell the water to farmers, while others use it to water "bio fuel" crops.

The CSG/LNG market is not out of the woods yet..........time will fix all ;)

Huang Chung

19-10-2010, 08:24 PM

Didn't realise it until today, but ex Qld Gas MD Richard Cottee is now MD of Nexus Petroleum (NXS).

mark100

20-10-2010, 12:22 PM

CSG industry now faces another hurdle with Origin's contaminated water reading. I no longer hold any CSG best to let the govt give all the approvals first

Shrewd Crude

20-10-2010, 04:03 PM

PNGLNG is shaping up to be the' go to guy' in LNG stakes...

companies involved worth consideration...
OSH, NGE, CUE, maybe HZN... this will take time
:cool:
.^sc

upside_umop

20-10-2010, 04:17 PM

wrong screen, thought i was on breakouts!

:o

STRAT

22-10-2010, 09:44 AM

Well its D day for CSG I suppose.

Good luck to all who have an interest in the outcome. Me included :D

trackers

22-10-2010, 09:51 AM

Well its D day for CSG I suppose.

Good luck to all who have an interest in the outcome. Me included :D

Good luck guys (Strat, Bermuda, FD and co)!! if I was feeling lucky I'd pick up some BUL at 11.5c, but dunno about investing where returns are based solely on uncertain outcomes :/

macduffy

22-10-2010, 01:54 PM

Early firming in CSG stocks today give cause for cautious optimism that the Federal govt will give the ok, probably with a stack of environmental conditions.

At least that's what I'm hoping.

Disc: Holding STO DTE BOW

Financially dependant

22-10-2010, 07:33 PM

It looks like it is all go....

http://www.environment.gov.au/minister/burke/2010/mr20101022.html

STRAT

22-10-2010, 07:35 PM

Thanks FD. Ive been looking for that all day.

Looks like its all gotten a bit harder though. Expect a few CSG specs to fall by the way depending on where their dirt is.

Now the big question is......

Do I/we hold the right ones.

crooky

23-10-2010, 12:05 AM

BUL and WCL not as effected as the others . WCL does border on the line , but with their Meridian purchase , I tend to think most landholders are adjusted to the go.

bermuda

23-10-2010, 12:10 AM

BUL and WCL not as effected as the others . WCL does border on the line , but with their Meridian purchase , I tend to think most landholders are adjusted to the go.

The CSG bubble is about to re-inflate. White Hope know what they are doing.

Financially dependant

23-10-2010, 08:29 AM

Monday is going to be interesting for all the coal seamers...especially STO and VPE..(& got the day off to watch it..:)

http://www.abc.net.au/news/stories/2010/10/22/3046070.htm?section=justin

Financially dependant

25-10-2010, 11:05 AM

The CSG bubble is about to re-inflate.

The buy side of STO and the other CSG companies are stacking up so the inflation of the sector is begining....a good day to be off and watch the action...:cool:

The Big Ease

31-10-2010, 11:35 PM

BG fid

http://news.smh.com.au/breaking-news-national/bg-groups-32bn-project-to-gas-up-economy-20101031-178o6.html

Corporate

01-11-2010, 07:41 AM

HUGE news!

ronthepom

01-11-2010, 12:45 PM

bermuda

07-11-2010, 07:40 PM

ronthepom

09-11-2010, 01:43 PM

STRAT

09-11-2010, 02:49 PM

Looking good for your WCL Strat with todays announcement.Hope so Ron. Its like some one put WCL in Cryogenic Stasis :crying:

ronthepom

09-11-2010, 07:09 PM

Hope so Ron. Its like some one put WCL in Cryogenic Stasis :crying:

Be patient mate, wont be long!! i like the way they operate--quietly.

Oiler

09-11-2010, 08:28 PM

Be patient mate, wont be long!! i like the way they operate--quietly.

Ron I agree with you, be patient :cool: WCL are very good operators and Angus Karrol has done a very good job to date

STRAT

09-11-2010, 08:58 PM

I will try fellas though patience is not known to be one of my virtues :D

mattyroo

10-11-2010, 12:18 AM

APLNG got QLD gov't EIS approval today.

bermuda

10-11-2010, 01:56 AM

Matty,
This thing has only just started.

tricha

11-11-2010, 09:09 PM

Ron,
This, as you know, is most fascinating. We have a 'product' called CSG which has been caught up in a double bubble. And having been burst twice it has now confused the market by having British Gas announce a world first. CSG to LNG............. ( The knockers said it couldn't happen ).............Unless someone can tell me that Britiish Gas is a lightweight , then this CSG is a goer.

A real boom in fact. .........Watch this space.

Ron,
Us CSG'ers are finally going to get our just rewards

WELL CSG'ers to get rewarded, check this out, lifes a Beach! :cool:

9 November 2010 Last updated at 15:45 GMT

Chevron buys Marcellus shale deposit owner Atlas Energy

http://news.bbcimg.co.uk/media/images/48965000/jpg/_48965481_shalecorecomp.jpg Chevron will get access to the Marcellus shale deposit - rock from which gas is a natural by-product
Continue reading the main story (http://www.bbc.co.uk/news/business-11719414#story_continues_1) Related stories

Chevron to drill Gulf of Mexico (http://www.bbc.co.uk/news/business-11602034)
Q&A: Will shale revolutionise gas? (http://www.bbc.co.uk/news/business-11399950)
Shell buys US natural gas company (http://www.bbc.co.uk/news/10179896)
US energy giant Chevron has agreed to buy Atlas Energy for $4.3bn (£2.7bn).
Atlas owns a 60% stake in a joint venture with India's Reliance Industries to exploit the Marcellus shale gas deposit in Pennsylvania
It means Chevron has chosen to follow ExxonMobil and Shell, by entering the burgeoning US industry for shale - a rock deposit that produces natural gas.
Chevron will pay $3.2bn in cash and its own stock, and will also take over $1.1bn of Atlas' debts.
Atlas shareholders will receive a package worth $43.34 per share - a 37% premium to Monday's closing price.
This will include $38.25 per share in cash, as well as shares in a subsidiary of Atlas that will hold non-core gas assets, and that is being spun off as part of the acquisition deal.
Continue reading the main story (http://www.bbc.co.uk/news/business-11719414#story_continues_2)
ATLAS ENERGY INC.

Last Updated at 10 Nov 2010, 21:00 GMT *Chart shows local time http://www.bbc.co.uk/news/business/market_data/chart?chart_primary_ticker=NASDAQ:ATLS&chart_time_period=1_day&canvas_colour=000000&primary_chart_colour=CC0000&use_transparency=0&plot_colour=ffffff&cp_line_colour=1F4F82&margin_left=35&margin_bottom=20&margin_right=20&time_24hr=1&tiny_chart=1&tiny_month_view=1&logo_strength=light&y_axis_left=1&x_axis_plain=1&cp_line=1&cp_line_style=dotline&charting_freq=1_minute&co_dimension^width=271&co_dimension^height=170&small_chart_x_label_format=1&date_label_spacing=30 pricechange%43.09 + +0.59
+ +1.39
More data on this share price (http://www.bbc.co.uk/news/business/market_data/shares/4/107048/default.stm)
Atlas' shares accordingly jumped 34% at the open of trade on Tuesday after the deal was announced.
Chevron's share price meanwhile dropped about 1%.
"We are acquiring a company that has one of the premier acreage positions in the prolific Marcellus," said Chevron's vice chairman, George Kirkland, in a press release (http://www.chevron.com/chevron/pressreleases/article/11092010_chevronannouncesagreementtoacquireatlasen ergy.news).
Atlas owns 486,000 net acres of Marcellus shale, as well as 623,000 acres of Utica shale.
Chevron will now take over responsibility for the up to $1.4bn cost of Atlas' share of the bill for drilling the Marcellus deposit.
Atlas' chief executive was also upbeat about the deal, noting in a press release (http://phx.corporate-ir.net/phoenix.zhtml?c=176445&p=irol-newsArticle&ID=1493767&highlight=) that shareholders will have enjoyed an 800% return on their investment since the company was first floated on the stock exchange six and a half years ago.

macduffy

12-11-2010, 09:16 AM

More speculation in the Aussie press that Shell may be interested in STO.

http://www.theaustralian.com.au/business/shell-tipped-to-be-putting-santos-on-its-buying-list/story-e6frg8zx-1225950343501

Financially dependant

12-11-2010, 10:09 AM

More speculation in the Aussie press that Shell may be interested in STO.

http://www.theaustralian.com.au/business/shell-tipped-to-be-putting-santos-on-its-buying-list/story-e6frg8zx-1225950343501

Thanks macduffy (as always first off the press), Now that would be a slap in the face for Woodside and Voelte's "girly gas" for the east coast.....:D

bermuda

12-11-2010, 11:09 AM

What we need now is another takeover to reinforce the metrics and enable everyday punters to easily calculate what some of these emerging CSG players are worth. The market seems to have gone to sleep and forgotten the basics of this huge industry. Shell hasn't and nor has BG. Exciting times ahead.

bermuda

15-11-2010, 05:50 PM

Anyone interested in CSG should read the latest STO preso. Page 10 showing China and India's gas % is particularly relevant.

macduffy

06-12-2010, 08:15 AM

BOW upbeat on gas sales.

http://www.theaustralian.com.au/business/bow-energy-upbeat-on-gas-sales/story-e6frg8zx-1225966031297

The Big Ease

06-12-2010, 08:46 AM

BOW is really waving the flags about now.
They are beginning to look like every takeover target during the frenzied buying 2 years ago.
we should have 2P first quarter after that it is game on.

macduffy

06-12-2010, 09:17 AM

BOW is really waving the flags about now.
They are beginning to look like every takeover target during the frenzied buying 2 years ago.
we should have 2P first quarter after that it is game on.

Doesn't hurt to wave the flags while the SPP is current, of course!

I'm holding BOW and will be taking up my maximum entitlement. (SPP closes 14 December)

Huang Chung

21-02-2011, 11:08 PM

Story on the CSG industry in Qld on 4 Corners tonight.

http://www.abc.net.au/4corners/content/2011/s3141787.htm

drillfix

22-02-2011, 03:21 AM

Story on the CSG industry in Qld on 4 Corners tonight.

http://www.abc.net.au/4corners/content/2011/s3141787.htm

Hi HC, What do you make of this mate? Plenty of the locals pretty upset at the industry thats for sure.

After watching the report, I must say as much as the concept and direction the industry is moving in, it is completely alarming to know that the Corporate Mobsters can just roll anybody, anywhere and at any given time, which to be completely honest, it kinda makes me sick to the stomach with all the Lies and deception going on (not all the time, but plenty to go around).

I also know one should not let emotions get in the way of an investment, but really, when you become fullly aware of seeing the cross between, total Greed, total incompetence and total lack of disclosure and thus also accountability, you really have to wonder what hope does this planet we live on really have in the years, decades or centuries to come.

I guess we shouldn' worry about it as it will be the kids of our kids, who's kids, kids will clean it all up and pick up the pieces.

Huang Chung

22-02-2011, 10:27 PM

Drilly, you've got to remember we're talking about the ABC here, so a totally unbiased view I would think not.

I do think the most important issue here is the potential damage to the Great Artesian Basin. I'm not really phased by the other arguments around lifestyle quality, number of wells etc.

By the way, if you missed it, the program now appears to be available as video on demand, at the link I posted above.

drillfix

23-02-2011, 04:56 AM

HC, yes I did watch it whilst it was being broadcast.

Biased or Unbiased there is a story here, which also resembles one of that in the US which a documentary called GASLand which is also available to watch or download (I recommend watching that too) to see what is happening in the US as well, which also shows alot of coverups and deception to only benefit Corporations and whatever way they choose to practice.

Big concern about the water table though. Can put risk in more than just one way than just the benefit to the gas companies, but rather generations to come that may follow or need to clean up such mess or potential mistakes.

macduffy

23-02-2011, 12:13 PM

Robert Gottliebsen's comment.

"
--------------------------------------------------------------------------------
A cloud over coal-seam gasRobert Gottliebsen

Published 7:51 AM, 22 Feb 2011 Last update 9:40 AM, 22 Feb 2011

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

The coal-seam gas industry is going to have to get its act together, and fast, or it will not achieve anything like the future the share market expects.

Just about every group that looks at Australia’s coal-seam gas industry says that there are too many players and that rationalisation is required. To date those concerns have come from those who saw the impossibility of constructing so much duplicated infrastructure.

But last night on Four Corners we saw an even more dangerous aspect to the over rapid development of our coal-seam gas – a farmer and environmentalist revolt at a time when such groups have great power in the federal parliament.

And to see the chairman of Macquarie Bank, David Clarke, telling AGL (and by implication most of the other coal seam majors) that they had lost community trust should be a massive wake up call for the industry. I suspect, with the calibre of management that has been recruited, that coal-seam gas players aim to win a race, not deal with communities or environmentalists. Yet loss of community trust can be a disaster for any industry in today’s environment.

It will take a long time before the oil and gas industries restore the loss of global trust that followed the BP Gulf of Mexico disaster, where executives simply did not work out what they had to do and did not understand the risks.

In Australia we have not encountered a BP-style disaster but the management style seems similar – they have not worked out what they have to do and the risks they face.

And attacking rural communities can back-fire in Australia.

The federal government has been planning to attack large farming-based communities in the Murray-Darling Basin to provide long term water for the Murray River. There are already clear indications that the initial buy-back targets are simply not feasible in the current political environment.

Now we have a new ground-up revolt where doomsayers are suggesting the Great Artesian water table will be affected by too rapid a development of coal-seam gas.

I am not in the business of endorsing or denying those fears, but when you have a mad scramble for resources and that scramble is taking place in farming communities, then the miners better understand that they are treading down a dangerous path.

As things stand, the combination of repairing the damage of the floods and building a multitude of gas projects simultaneously probably presents a construction materials and labour drain that will seriously disrupt the nation.

Coal-seam gas is a great Australian resource, but the mad scramble to develop it quickly could actually endanger the industry."

macduffy

27-05-2011, 01:16 PM

LNG from coal seam gas comes a step closer with start of construction of the GLNG plant in Queensland.

http://asx.com.au/asxpdf/20110527/pdf/41yws8xqrd1xm6.pdf

drillfix

27-05-2011, 01:37 PM

Good stuff there Macduff,

Perhaps Exoma Energy (EXE) can also help to fill up Glastone..lol

Check it out, a current drilling campaign and first whole spud today, with many more to follow soon.

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01184352

For all you Gas Masks out there, dont forget to take a small pos in a company that is just off its low ;)

modandm

27-05-2011, 03:40 PM

guys just for those only now awakening to the potential for LNG and CSG in Australia could you outline briefly:

- What the differences are between CSG and LNG?

- Which companies are invested in LNG vs CSG?

from my limited knowlege I believe WPL is LNG, STO is both. Am I correct? Can we expand the list of cos and their relative % investment into LNG vs CSG.

macduffy

27-05-2011, 04:31 PM

That's a big subject there, modandm, and I'm no expert so I'll leave the technical answers to others. But suffice to say that LNG - Liquified Natural Gas - is produced from various forms of natural gas, including CSG (CSM) - Coal Seam Gas (Coal Seam Methane). Should be noted that the CSG to LNG process hasn't been done commercially yet so there is a higher degree of risk here although confidence is high among the big international players that it will work OK!

CSG can, of course, be used in other ways such as generating electricity as in a couple of Queensland stations. BOW has one of these under construction currently.( Blackwater Power Project).

drillfix

27-05-2011, 04:32 PM

And for your CSG lovers out there who dont know much about EXE or Exoma, here is a brief:

About Exoma:

Exoma is a Brisbane based, ASX listed energy company primarily focussed on its five petroleum
exploration permits in Queensland’s Galilee Basin. The permits cover an area of approximately 26,840
square kilometres and Exoma considers the permits to be highly prospective for coal seam gas and
shale gas in particular. On 31 March 2011 Exoma closed a Farm in Agreement with China National
Offshore Oil Corporation’s subsidiary CNOOC Galilee Gas Company Pty Ltd, where by CNOOC will acquire
a 50% interest in all 5 of Exoma’s ATP’s by contributing the first $50 million to the exploration
program.

An extensive evaluation program has been undertaken since Exoma acquired the tenements in October
2009, confirming potential gas in place resources of a magnitude necessary to support major long term
development projects. Evaluation work on four of Exoma’s initial prospects by MHA Petroleum
Consultants has led to the certification of over 2Tcf of CSG 3C contingent resource. Potential Gas In
Place over all permits for CSG & SG exceeds 100TCF.

Some food for thought people, and just off the lows. ;)

Current sp:

EXE last 15.5c
EXEOA last 0.09c

30-05-2011, 01:08 PM

Check out EDE today. Big UK gas prospects.

The Big Ease

01-09-2011, 09:29 AM

DO we have a Shale Gas thread?
I think that might be the next one to kick off.

macduffy

07-11-2011, 08:24 AM

Interesting comment from Robert Gottliebsen.

"The University of Queensland has walked into a minefield as it seeks to be a world leader in coal seam gas research.

The coal seam gas debate is red hot, with growing community pressure to halt developments until more research is undertaken. The companies have already invested billions and have long-term contracts.

Suspension of development for any extended period would be a financial disaster. However, talk-back radio ratings leader Alan Jones is firing an incredible broadside at the industry and independent Tony Windsor is now making his support of the mining tax subject to a suspension of coal seam gas mining until more research is done.

In a community relations sense the industry has been appallingly badly managed, with British Gas, Shell/Arrow and others not understanding what is required in Queensland. And most of the operators in New South Wales had no idea of the community powder keg they were unleashing.

The industry’s opponents want more research on the effect on water and farmland before the dramatic escalation in coal seam gas mining takes place.

So what started as a long-term initiative by the University of Queensland to be funded by the industry and governments is now under pressure to deliver a short-term outcome to enable development to continue.

The university’s Sustainable Minerals Institute Director, Chris Moran, says the university will “undertake critical research that will drive sustainable practice in this emerging industry, and bring the scientific rigor and data that have been lacking to date to the social, environmental and technical challenges the industry faces”.

Tony Windsor has seized on the long-term research initiative and said coal seam gas mining companies should pause while the studies are conducted. He wants a cessation from the industry “in a voluntary sense to just breathe while we get these processes right."

Windsor warns of "fairly dire" consequences for the industry and political players if they ignore community concerns and unrest.

My guess is that the research work that has been done to date can be harnessed by the university to enable the industry to proceed, but if company money is used for this work then the industry opponents will bag the research.

The short-term research, as distinct from long-term ongoing best practice research, will have to be funded by governments if it is to have impact.

What will probably save the industry is that it has the support of Resources Minister Martin Ferguson and his opposition counterpart Ian Macfarlane."

Huang Chung

07-11-2011, 12:01 PM

The bush is being quite vocal about CSG, and even coal mining. This has all happened in the last year, or two at the very most.

The Scenic Rim Council (behind the Gold Coast) has been quite vocal...the campaign being "Keep the Scenic Rim Scenic".

http://www.google.com.au/url?q=http://www.keepthescenicrimscenic.com/&sa=U&ei=nRC3TuuVM429iAetk5HsAQ&ved=0CBYQFjAA&usg=AFQjCNFIgmuJ1-PevhGer_ZiX20dsnz_OQ

bermuda

07-11-2011, 12:42 PM

[QUOTE=Phaedrus;198317]Huh?

VPE 14.5 cents to 20.5 cents in 1 month
BOW 18 cents to 27 cents in 2 weeks
RPM 4 cents to 8.4 cents in 3 months

Phaedrus,
Somehow this popped up this morning.
VPE now SXY now 51 cents and more to come after this morning's Growler 6 announcement. We are going to have 11 little Growlers!
BOW now being taken out at $1.52
RPM was taken out at about 23 cents.

Good things take time. I have shifted my focus to shale . We don't hear from you these days but your input was greatly appreciated.

I was in touch with Oiler today. He is not well with stomach cancer. Shrewdy and I hope to see him on Thursday after he has had some surgery.

If anyone wanted to get in touch with Graeme you can get him at Graemetnz@xtra.co.nz
He would love any support you can give him
Cheers

Huang Chung

07-11-2011, 01:05 PM

Bermuda, what do you think of the ADE T/O announcement by Beach?

tricha

07-11-2011, 03:50 PM

Dam Oiler you better get better quick, I owe you a beer or three.

My turn to say hang in there! All the best.

drillfix

07-11-2011, 03:55 PM

I was in touch with Oiler today. He is not well with stomach cancer. Shrewdy and I hope to see him on Thursday after he has had some surgery.

If anyone wanted to get in touch with Graeme you can get him at Graemetnz@xtra.co.nz
He would love any support you can give him
Cheers

Oh gee bermuda, not good.

I sure do hope that Oiler does get well soon and manages to get back to do some more posts here on ST after he gets well.

Get well Graeme and strength be with you mate!

bermuda

07-11-2011, 04:29 PM

Bermuda, what do you think of the ADE T/O announcement by Beach?

HC,
I am really pleased. I needed some dosh and didn't want to sell either EKA at a loss or MAD at a slight profit. So I have sold 150k ADE and will await ADE's Board statement due later this week ( I hope ) before I sell the rest. I have always liked ADE and Carl and Neil's manner.

It is way undervalued but in this game and in this economic climate sometimes you gotta take what you are given.

Huang Chung

07-11-2011, 05:23 PM

)

It is way undervalued but in this game and in this economic climate sometimes you gotta take what you are given.

Way too true Bermuda.....

Glad you are satisfied with the outcome.

macduffy

15-11-2011, 08:27 AM

Drilling for csg in NSW continues to be fraught with difficulty.

http://www.smh.com.au/environment/win-for-gas-blockade-as-santos-pulls-back-20111114-1nfk7.html

macduffy

28-12-2011, 03:23 PM

Comment from the Australian Institute of Public Affairs, supportive of csg.

http://www.smh.com.au/business/coal-seam-gas-an-opportunity-too-good-to-let-slip-by-20111227-1pbfk.html

airedale

01-03-2012, 09:26 PM

Hi HC, that link just invites me to sign in to Microsoft mail.

Huang Chung

01-03-2012, 09:29 PM

Hi Airdale

I'll try again....having some problems.

tricha

16-05-2012, 12:04 PM

I have a feeling coal seam gas and shale is going to die, for the short term. There is to much conventional gas around at the moment, in the States, it is worth next to nothing.
Here in Australia, there seems to be an abundance of conventional gas, that no one wants at this moment.

Santos irked by delaysPeter Klinger Adelaide, The West AustralianMay 16, 2012, 7:32 am

http://l.yimg.com/fv/xp/wan/20120516/11/1538158204.jpg (http://l.yimg.com/fv/xp/wan/20120516/11/1538158204.jpg)

Santos irked by delays

Santos has ruled out selling its stake in the big Caldita-Barossa gas field despite ongoing frustration that partner and project operator ConocoPhillips is yet to agree to development of the Timor Sea asset.
Santos managing director David Knox also said yesterday "there is some movement here" with regards to development of the 3.5 trillion cubic feet gas field, which has long been viewed as feedstock for a second processing train at the ConocoPhillips-run Darwin LNG plant. Santos is a partner in Darwin LNG.
ConocoPhillips is yet to announce an expansion of Darwin LNG and last year almost sold its 60 per cent stake in Caldita-Barossa to Total, a move interpreted as a lack of interest in the field's development, much to Santos' frustration.
Santos owns 40 per cent of Caldita-Barossa and has demonstrated a willingness to sell undeveloped assets, such as the $US350 million disposal of its interest in another Timor Sea field, Evans Shoal, to Eni. But Mr Knox, speaking on the sidelines of the Australian Petroleum Production & Exploration Association conference in Adelaide, ruled out a Caldita-Barossa sale because "at the end of the day we decided it was better in our portfolio than out". "We have been pressing the operator to make it (Caldita-Barossa) a bigger chance (of development) for a long time so we are continuing to beat that drum . . . and there is some movement here, there is some action," Mr Knox said.
"We ask the same question why can't we get on with it and I say there has been some business development work which has been ongoing which I think we believe will reap some rewards in the near term. The beauty of Caldita-Barossa is that Conoco have got a good ownership in there as well, so we believe there is a chance of it coming in, becoming either a feedstock for the first existing train de-bottlenecked or potentially for an expansion there."
Darwin LNG sources its gas from the Bayu-Undan fields but is expected to require more gas late this decade as reserves deplete.
Complicating the Caldita-Barossa development is that the field is high in carbon dioxide, with levels of more than 10 per cent and higher than Bayu-Undan's CO{-2} content.
Santos' broader LNG ambitions will pick up pace within months when it starts drilling the high- impact Crown well in the Browse Basin with the hope of proving up a sizeable hydrocarbon reserve that could also become feedstock for Darwin LNG or for a stand-alone operation at James Price Point.