This could be a real sleeper asset.Back in 2010 KEY earned 45%...

This could be a real sleeper asset.

Back in 2010 KEY earned 45% of this by funding 60% of two (dud) oil exploration wells. Both were quite shallow at 550 and 700 metres. this is important because the gas prone sediments are much deeper and at the time KEY was only after oil.

When EGO gave us Gulliver part of the payment to them was 22.5% of EP 437. that intrigued me.

Now EP 437 is in the North Perth basin.

The following is an AWE announcement: and it starts to say to me that KEY and EGO may be sitting on 45% of a potentially very significant unconventional gas bonanza and be player in Perth basin shale gas party

AWE ASX announcement on November 9th, 2010

"Irwin River Coal measures
The third zone of interest in the Perth Basin is the Irwin River Coal Measures, a formation that contains both Shale Gas and tight Sandstone Gas targets.
Well data confirms that the Irwin River Coal Measures extend across the entire North Perth Basin and are recognised to generate gas. This formation had previously been disregarded as a commercial conventional target, as the formation was considered too tight to produce commercial quantities of gas. However in 2009, AWE fracture stimulated the vertically-drilled Corybas-1 well (AWE 50%) to test this formation as an “unconventional” play."The Irwin river coal is already producing from Corybas 1 which was fracced in 2010 and has flow rate of 1.2 cubic feet a day.
"AWE believes that a multi stage fracture stimulated, could achieve significantly higher rates of production rates and recoveries."

maybe i'm dreaming but i believe EP 437 could be very significant for KEY. I'd be very surprised if they are not looking closely at it.