DeepLode thinks that the giant Alcoa is a very smart operator. It has done some highly advantageous deals in Australia eg the energy supply deal with the Victorian Government has been a bonanza for them.
It looks as though they may be on to another good deal in W.A. Having agreed to farm in to a major stake in the Warro tight gas project in Western Australia’s onshore Perth basin in return for funding development of the field you can bet they will be wringing concessions out of the W.A. Government
Alcoa knows the gas is there (at least 5 trillion cubic feet of the stuff) and to energy starved W.A. that's very attractive.But of course being tight gas the trick is to get it out.The Americans are old hands at tight gas extraction the finer details of which escape DeepLode. However DeepLode doesn't need to be an oil engineer to know that the rewards could be substantial.
A beautiful state of the art, specially designed rig has arrived from the States and is now at work on the first well. Any success will have a huge impact on energy exploration and supply in Australia. The action is dominated by Alcoa Australia with 65% of Warro, project leader and private company Latent Petroleum will hold 25% and a little Australian spec. stock will hold 10%.
That spec stock Transerv Australia (ASX: TSV) stands to be seriously re-rated at any scent of success and news will be forthcoming in the very short term. DeepLode is of the opinion that a little holding in TSV could be the way into a major development backed by major interests...so keep an eye on this project.
Post a Comment