Not concerned with the potential exclusion zones for two...

Not concerned with the potential exclusion zones for two reasons, firstly this isn't the SA Government's legislated 'new zones' and secondly one would expect that all licensee applications to work with the Government and or department of planning / environment to mitigate issues of concern with the view to opening up the basin further. It's evident that all licensee applicants could be affects if what has been proposed is implemented in its entirety. However, I believe this is not likely to happen and we will move towards a median being achieved.

Also I've always modeled a potential valuation for CEL based on being awarded 200,000 acres out of an application for 1mil acres. If we believe the report excludes 66% of the 1mil lease application, then 333,333 acres is a positive for a base case valuation.


On a positive note, its good to see this extensive report finalised and now published, as it should assist with the Government moving forward on the path to granting licenses.

This short term volatility will pass...