I like Roma and see better value in it than ITC or VPE. I'm a bit fixated on Roma but the following is good reading. DOME PLC have recently taken over defunct WSPs part of the JV and will at some stage drill this known gas deposit. The key to unlocking value here is dewatering and then a horizontal drill.
Roma Petroleum NL is the Operator of the PL 171 Joint Venture Nth Cherwondah
PL 171 BOWEN BASIN, QUEENSLAND VICTORIA PETROLEUM N.L. INTEREST - 8% ROMA 32% DOME 60% PL 171 replacing the previous ATP 465P covers an area of 173 square kilometres within the central portion of the Bowen and Surat basins in Queensland.
Queensland Gas Company Limited (QGC) has drilled two Coal bed Methane (CBM) wells and one core hole in the Walloon Coal Measures of the Cherwondah Anticline, with the drilling of Trafalgar-1, Lawton-1 and the core hole Lawton-2.
Trafalgar No. 1 intersected 19.6 metres of coal within the four upper seams of the Walloon Coal Measures. Testing of the well during drilling produced gas at a rate of 20,000 cubic feet per day (570 cubic metres per day) and water production measured at 360 barrels per day. These results are typical of the initial flows from wells drilled in the Powder River Basin in the USA.
After dewatering, these wells produce significant gas flow rates. Trafalgar No. 1 demonstrated that the coals of the Walloon Coal Measures are gas saturated and the 360 barrels of water production indicates that the coals have good permeability. Gas saturation and good permeability are the essential criteria for successful coal bed methane production.
Lawton-1 had similar results, in which a flow test of the interval 129-378 metres produced gas at rates up to 19,400 cubic feet / day.
Current results indicate the Walloon Coal Measures of PL 171 have the potential to contain 350 billion cubic feet of recoverable Coal bed Methane gas reserves.
Interest in methane gas produced from coal deposits is increasing in Australia, particularly in the Bowen Basin. PL 171 is adjacent to the Peat Coal bed Methane field, which is now producing sales gas into the pipeline linking it to Brisbane markets.
The next well when drilled will be a test of the ability of horizontal drilling to increase gas flow rates in the known gas bearing Triassic sands.
I've adapted the above from a VPE report Cheers
RPM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
