resource research

Hi i've been doing a bit of research on this stock lately and thought i would share what i have come across. It maybe what you already know but i think it highlights some of the risks associated with the project. Yet still massive potential.

The Nappamerri trough is particularly large (15000km2), deep (>10,000 feet), thermally mature and overpressured and thus appears to be the most prospective portion of the Cooper Basin for shale gas development. There is also relatively little faulting occuring within the trough as structural deformation is confined to the uplifted ridges.

The best shale exploration targets appear to be the Early Permian Roseneath and Murteree shales.

The REM sequence appears to have prospective shale thickness across the entire western Nappamerri trough.

Risk-
Permian-age shales have a non-marine (lacustrine) depositional origin. Basically its out in the middle of the desert and in order to frac you need heaps and heaps of water.
Although being in this location does reduce the risk that there will be any contamination of local water sources.
When they frac they pump heaps of water sand and chemicals into the well and this fractures the shale opening it up for the gas to release and flow a lot better. But these chemicals can find their way into local water sources, which is bad.
High levels of CO2 are common. Gas produced from tight sandstones in the Epsilon formation (central position of REM) contains elevated CO2, typically ranging from 8-24%.

REM formations have an estimateed resource concentration of 105bcf/mi2 benefiting from favourable thickness, moderate TOC (total organic carbon), high thermal maturity, and overpressuring but reduced for 15% average CO2 content.

The prospective area for this shale-bearing sequence is estimated to be approx 5,500 mi2 covering positions of the Nappamerri, Arrabury and Tenappera troughs. Net 15% CO2 content, the estimated risked completable shale gas in place the REM sequence is approx. 342TCF, while risked recoverable resources are approx. 85TCF.

So 10% of 85TCF can be equated for ADE.

The Cooper basin has Australia's best capablities for fracking shale reservoirs.

So if you like the potential and growth for shale gas use locally and globally in the future, shipping to nearby neighbours such as Japan why not take the punt on this little bad boy. IMO You wont find another stock this well positioned in to a shale gas play in aus.

1st post ever..