Coalbed Methane (CBM) Corral Message Board

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Gold/Mining/Energy : Coalbed Methane (CBM) Corral

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From: zebra4o1	2/10/2009 4:08:41 PM
	of 365

Coal Seam Gas (as they call it down under) is still hot in Australia. Latest deal was BG buying out True energy. Seems like all the articles are now reporting prices per GJ (which is roughly equal to the energy content of 1 MCF) . And I'm not sure if they are talking reverves, resources, or what exactly. But here is one estimate: bloomberg.com "In terms of reserves, BG is bidding 32 Australian cents per gigajoule for Pure, less than half the 72 cents a gigajoule it paid for Queensland Gas Co. in October, Sydney-based Citigroup analyst Di Brookman said in the report. " So for this latest deal it looks like $200 million US per TCF. The prices paid during the fall frenzy were up to 5 times higher. bloomberg.com "ConocoPhillips's offer values Origin's coal-seam gas resource at A$1.65 per gigajoule of proven, probable and possible resources. That matches the valuation by Malaysia's Petroliam Nasional Bhd. in its bid for Santos Ltd. to develop a rival LNG project in Queensland. ``ConocoPhillips appears to be buying gas assets well above the market price in the hope that LNG conditions will tighten further in the next decade,' Neil McMahon, a London- based analyst at Bernstein, wrote yesterday. It ``appears aggressive to buy assets at market leading prices when' the coal-seam gas ``to LNG concept has not been proven.' BG, which offered A$0.7 per gigajoule of Origin reserves, was partly basing its estimates on Royal Dutch Shell Plc's agreement to pay A$0.52 a gigajoule of reserves in a transaction with Arrow Energy Ltd. "

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