Because no other company has potentially 12 Trillion cubic feet of gas at Otway and in the region of 300 Billion cubic feet at Wombat that was to be commercialised. If LKO go into bankruptcy then they surrender all exploration permits....the gas alone at Wombat is worth approx. $2.5 Billion at the conservative $8/Gigajoule.
Any guesses who would want to secure those permits?
I say it again...How much risk do you think there is to drilling two conventional exploration wells in the Otway permits...the Victorian Auditor General Report assessed risks in all LKO permits as LOW.
Common sense would tell you to consider all drilling on a case by case basis...if it was OK for Origin to use horizontal drilling in the region with no ill effects then what is the difference in the case of LKO.
Bring yourself up to date and read my previous posts....if the estimates are correct there is a fortune in gas in the LKO permits that was sitting under the noses of all the major players .....it took a punt from LKO to take a second look at seismic data done decades ago.
Read the Inquiry into onshore gas in Victoria and what LKO had offered to the Victorian government ....cheaper gas reserved for the State Domestic market and Interest from International companies to setup manufacturing to take advantage of that.
What the current court decision confirms is that something is rotten within the Resource department of Victoria.
LKO Price at posting:
0.2¢ Sentiment: None Disclosure: Held
(20min delay)
