-Market cap- 19mill
-cash 6mill end of march
SP- 8.5c

Significant gas resources: Independently Estimated Total Mean Gas in
place amount to 13.76 TCF and maiden 3C gas resource of 672BCF.

May17-Research report target price 16c

http://www.realenergy.com.au/images/...eal_Energy.pdf

Real Energy (ASX: RLE) is a simple, straight-forward shot at gaining exposure to a potentially large onshore gas resource in Australia.

We’ve been tracking RLE, and its chances of hydrocarbon success over the past few years.
In our last update, ‘RLE to Frac in Coming Days as M&A Activity Hots Up’, published around this time last year, RLE was gearing up to begin an extensive fracking program.
Since then, RLE has confirmed a significant gas discovery in the Cooper Basin and is continuing to progress exploration and development activities at Windorah.

The pieces are coming together as RLE works towards commercialising its project.
In late January, RLE recommenced operations at the Tamarama-1 well and has successfully brought the well on with intermittent free-flowing operations.
Tamarama-1 is proving up the Basin Centred Gas concept and is a key step in RLE’s efforts to commercialise the Windorah Gas Project.

RLE is now witnessing a stronger and faster build-up of pressure and more gas flowing to surface from Tamarama-1. It intends to continue to flow the well to enable it to collect and determine reservoir performance data as it works towards commercialisation.

Its non-binding MoU with the $7.5 billion capped Australian mining giant Santos to supply raw gas from Windorah to be processed into sales gas and then be supplied to the east Australian gas market is a big step forward for the company.

Santos and its joint venture partners have gas processing facilities at Moomba in South Australia and RLE and Santos, as Operator of the Moomba gas plant, have agreed indicative terms for gas progressing and transportation services.

The terms of the agreement form the basis for a subsequent formal binding agreement which could inevitably support the economic development of the Windorah Gas Project.
RLE has also agreed in principle to swap geological data for its wells for geological data for a nearby well drilled by Santos.
The MOU with Santos could give RLE a clear pathway to commercialisation without the need to build an expensive gas plant and other associated infrastructure.​