I am happy with the quarterly Its taken a long time but if we dig further we should see why it has taken so long.
lets look at the deal we have with Shaanmei in Dec. 3 blocks including the wang feng block after the negotiation with Moke stopped.
The quarterly out on 29 April 2016 stated that the WangFeng Block has four wells drilled to date (with two production tested and a full field development plan being progressed).
If we wind back our clock a few years, we paid around $4-5m for drilling of 2 wells with Longmei yea? Those two didnt even get to the production testing phase.
We only have to stump up $1m for the wang feng block and other acreage there. Wang feng block itself should have cost us more than $1m consider it has 4 wells and 2 are in production testing mode.
As for the other acreage, it does seem to be in areas where there are high level of CBM resources. ( this was per the ann of the agreement. Specifically, the Wangfeng and Sangshuping mining areas in Hancheng are located in the east margin of the Ordos Basin, which is rich in coal bed methane resources.
I would have thought people cant just throw around the word resources/reserves without knowing whether they have gas there or not.
I think we got a great deal and yes it has cost us a lot of time but then we didnt get diluted via paying over for the MOKE deal.
TNP Price at posting:
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Its taken a long time but if we dig further we should see why it has taken so long.
