News: OXX Octanex not granted petroleum retention leases for Ascalon gas discovery, page-4

My research indicates these are the criteria as to how viability is judged - it could be incomplete .....

1. addressing market issues, including market access, prices, and timing of market opportunities, it will be accepted that a potential market exists for crude oil, condensate or LPG recoverable from a project and that the terms and conditions of supply will determine the viability of the project. However, it is recognised that the market for natural gas is often characterised by large, long term contracts, at specified rates over specified periods, and specific quality. Therefore in some circumstances, the Joint Authority may agree that an otherwise commercially viable gas project (assuming current prices) is not commercially viable and may not proceed due to an inability to obtain a contract at prevailing market terms and conditions, which would support development. Alternatively the Joint Authority may accept that the level of resources, while substantial may be insufficient to meet any currently available market opportunity (e.g. a LNG project).
   
   
2. 5.5 In recognition that market considerations can stall an otherwise commercially viable ‘dry’gas project, the Joint Authority will give favourable consideration to an application for a lease if the applicant has demonstrated reasonable attempts in good faith to obtain gas supply contracts which were unsuccessful. In such a case, the major test in assessingwhether the criteria have been met is likely to be assessing the applicant’s efforts in obtaining a market for gas if the project can be demonstrated to be viable at prevailing prices (i.e. otherwise passes the commerciality test). However in order to enhance the marketability of a project, it might be reasonable to expect that the lessee better define the resource if this would be necessary to demonstrate supply capability to potential buyers.