IMO it's the lack of finance that has hit the SP and we have all seen how quickly the SP can move on good news.
Well #1 was successful in that it proved that gas is present in the coal seams, that there is actually more coal at Well #1's location than first thought, and that permeability is "suitable for gas production". Obviously more needs to be proved, i.e. gas saturation levels, but let's face it, we have only drilled the one well so far.
I also think the market has been a bit disappointed by the delays and how much the first well cost, as going by what we achieved, i.e. drilling 1 well, we had an exploration and evaluation spend of $1.2M not including what was spent during the July/September quarter. Well #1 was supposed to cost $750k. The Company is obviously taking steps to address this side of the business.
As has been said on this thread before, you can have the best asset in the world, but without finance to develop it, the SP is going nowhere. I have no doubt at all that assuming the asset is as good as it seems to us, the finance will come, it'll just be a matter of time and on what terms.
TNP Price at posting:
0.8¢ Sentiment: Buy Disclosure: Held
