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[mickey take] 13/2/2008 12:17

If you ever visit Texas you will notice that the Texas Star is always flown above the stars and stripes – I asked a Texan once why that was?

His reply was – An eagle will always take the highest point to land and rest.
When this happens it always ensures that he sh!ts on the stars and stripes!!!

[deanroberthunt] 13/2/2008 12:14

thats why they're called Yanks isn't it?

[bobbyg2] 13/2/2008 12:08

Texas? isnt that part of mexico?

the yankees won didnt they - doesnt that make them all yankees?

[mickey take] 13/2/2008 12:00

The United States of America Bobby! –The Yankees and the confederacy don't exist anymore unless you reside in Texas :0)

[deanroberthunt] 13/2/2008 11:55

freudian slip Bobby, we won't tell.

[bobbyg2] 13/2/2008 11:55

whatever - its all yankeeland

:)

[relishing] 13/2/2008 11:50

I think Kansas regs will be more relevant bobby :)

[bobbyg2] 13/2/2008 11:48

yes oil - one of the setbacks of CBM is the need to carefully dispose of the water as it can be pretty nasty stuff if it gets into the water table. California has pretty strict regs on this. oh yeah and kansas have too.

I like this bit though

'exploration and start-up costs are relatively inexpensive'


NB: post edited to make me look a bit less scatty.

[oilretire] 13/2/2008 11:38

Meanwhile, back to things that matter for SER, thought this was a nice little bit of background info on CBM - I didn't realise water, and possibly lots of it, is to be expected!

--------------------

Put simply, coalbed methane (CBM) is exactly what it says. It's regular methane (CH4) that can be extracted from coal seams, producing very light, sweet gas. As a potential energy source CBM has been on the radar for many years, although its history is less than salubrious. In fact, it was the reason that miners in early years would take caged canaries to the coalface. If the birds stopped singing, the vicinity was evacuated immediately as there could be a firedamp (gas leak) nearby and thus the potential for an underground explosion and cave-in.

As technology, and rather more safe ways of working, have developed, energy companies have taken a fresh look at CBM as a potential resource. But the methods used for production of this gas are significantly different from those of traditionally sourced gas and it has only become economically viable in today's environment of high oil and gas prices.

In contrast to conventional natural gas sources, which are found trapped in the pore space of rock types like sandstone, CBM is actually absorbed by the pores of the coal. This means that it can only be extracted using new and unconventional methods.

Typically a production well is drilled through the rock layers and water pumped out of the coal seam in order to decrease the pressure that holds the gas both in situ and adsorbed onto the coal surface. Methane is released and follows the water as it is pumped or flows to the surface, where it is separated, and transported through pipelines to storage facilities or gas companies.

Coal's sponge-like properties mean that it can store up to six times the volume of gas found in traditional reservoirs, making this a potentially huge worldwide resource. However, as each coal deposit is different, the amount of water that must be pumped to the surface varies. The volume of water also changes over the life of the well, with more water being removed from the coal seam initially, before declining through the years.

CBM wells typically produce at lower rates than conventional reservoirs; the key is ultimate recovery per well. CBM wells are shallower and cheaper, but recover BCFs rather than 10s-100 BCF's. Changes in pressure alter the porosity and permeability of the coal, causing changes to the gas flow throughout the life cycle of the well.

Significantly, each CBM venture is unique. Site-specific geology and other local factors determine the potential for commercially viable development, and the most appropriate approach to production. Although learnings can be taken from previous ventures, the unique geography of each CBM project often means starting from scratch.

Despite the changing demands of each asset, exploration and start-up costs are relatively inexpensive – and resources are vast with the global CBM resource base estimated to be in excess of 500Tcf (recoverable). As the world moves to a scenario where we face insufficient access to conventional sources of hydrocarbons, CBM looks set to make a significant contribution to meeting energy demands.

[deanroberthunt] 13/2/2008 11:30

He must be in the no then Bobby.

[bobbyg2] 13/2/2008 11:28

rollover chaps

good to see someone keeping the faith though!

[deanroberthunt] 13/2/2008 11:26

Do you no that for a fact or is it a know brainer?

[petermoran] 13/2/2008 11:22

Think its a rollover dean.

[deanroberthunt] 13/2/2008 11:20

Qtr mill buy....

[bobbyg2] 13/2/2008 10:54

rel

yes I thought that too - does go to show these new step out wells, while being potentially a greater risk than previous wells, are also potentially a higher reward too.

[bobbyg2] 13/2/2008 10:53

yas0

All mouth, no trousers.

you know sweet fanny adams about SER and you just trade the chart buying at any dip and selling at any small profit.

I dont think any regular on this board has any respect for short term opportunistic traders who cant make any reasoned case for the true worth of SER.

Youre about as erudite and worth respect as the '2p target' brigade - although at least their posts arent littered with spelling and grammar errors.

[relishing] 13/2/2008 10:52

Any posts about Sefton today?

I thought this was an interesting one from MT yesterday:


Mickey Take - 12 Feb'08 - 12:27 - 12813 of 12909


Rel- To be honest I don't have any idea, all i would say even though these are being termed step out wells there maybe a possibility that they may hit a pocket of the reservoir that has a pressure in excess of those at present, this could in turn provide an output which could eclipse the present wells.

[deanroberthunt] 13/2/2008 10:51

how's VLR doing? graph looks like the Hannanchan

[deanroberthunt] 13/2/2008 10:48

UK....thought he was long? wasn't he spouting the bull case not a day or so ago, clearly doesn't know whether he's coming or going...dementia

thought he always said stick to facts not hope? and yet he's stated "I have no evidence for this"...oh dear

"We will no very soon".....no??? oh dear

last but not least the gracious fellow (not) who has not a clue whats transpiring at Sefton has made some ghastly calls in the past.....VLR a speculative buy at 20p now at 7p and heading binwards....MCB a nailed on certainty to rise to 300p from his call at 260p, now 80p and sell notes galore...

oh and he even called JKX a sell in the mid 300's now romping away pushing 450p

New Readers should note the forementioned in relation to gracious fellow

Case for the prosecution is irrefutable

[yas0] 13/2/2008 10:48

Perhaps Eaton High is the local comprehensive in Oldham....

[deanroberthunt] 13/2/2008 10:47

know not no.

[yas0] 13/2/2008 10:47

Eton, not Eaton.

[yas0] 13/2/2008 10:47

Bobbyg,

I do not need to submit a bull case to gain the respect of posters on here. I already have their respect, as evidenced by the numerous queries directed my way.

But since you ask, I hope to see the price higher by a penny or two - that shall be sufficient for the gracious fellow to walk away with a tidy profit (assuming buyers support it at the time since liquidity is often a problem with tiddlers).

I have set out detailed analysis in the 19 page report, but I suspect bulls do not wish to see that on here. Hence I shall refrain from posting it, not least because I am hoping the stock goes up from here.

[deanroberthunt] 13/2/2008 10:44

Bobby.....we will no very soon.....oops, I used no instead of know, must have hit the adjacent key by mistake, easily done...wouldn't have happened if I'd gone to Eaton.