" 45 year lease over drilled out coal mine gas acreage – 1/2 Tcf gas in place (plus upside) calculated on just initial project area, Hegang • strong evidence of gas saturation and flow potential - upcoming well programme to prove this."
"Triple is operator @ 80% profit interest, carrying LongMay’s 20% capex/opex – Agreement is exclusive to Triple – Triple has rights under JV to sell gas severally."
" Significant central Government push for more domgas production • China gas markets pay $7 - $8 / mscf – China currently pays ~3-4 times more for gas than the USA • China imports (Australian) LNG @ ~ US$15+ / mscf."
"• Anecdotal information demonstrates that the coal seams are gas-charged – History of mine explosions from gas invasion, gas reported to increase at depth – Proximate (rudimentary) vertical coal gas well in same basin - producing gas – Abandoned coal mine-drives already producing (low quality) gas into grid."
"• Coal seams are already mapped in detail – exploration phase complete – ~ 200 logged boreholes shows up to 20 stacked coal seams – some 3.5m thick. • Coal seams at optimal depths of 400 - 1,700 metres • 5 known cored coal seams average 3.5m in thickness – Up to 15 more known coal seams yet to be evaluated • Gas in the coals is reported to average around 95% methane. • Proximate wells (in the same basin) producing ~ 300mcf/day • Water influx is low, high quality."
"• Gas price = A$7.00 - 8.00 / mscf – Ready market for any gas that can be produced just 3 kms away from first well – Domgas reticulation infrastructure is already in place."
TNP Price at posting:
2.0¢ Sentiment: Buy Disclosure: Held
