Anyone closer to the action know when HMG are likely to award the licences to bidders? Is there a date that all bids have to be in by and do we know how long the process takes? With half of the UK up for grabs it could get interesting?
Interested to find out if anyone other than iGas, Total SA, Cuadrilla and Egdon are likely to join the party.
It then goes on to point out that intitially it may be more expensive, but you can sell the LPG after use, or reuse it, and you do not have to have a clean-up operation of water afterwards. The initial cost, therefore, becomes negative at the end. If what they say is true, then the ability to recover 30% more is good news for the companies and the shareholders, alike . It would also extend the national reserves
A New Way to Frack One leading alternative that is gaining traction with some companies is fracking with liquefied petroleum gas (LPG). This technology was developed in Calgary, Alberta by Gasfrac Energy Services a few years ago, and allows fracking to be done with propane, butane or pentane – or mixtures of those gases – as a substitute for water. Gasfrac initially used propane, but the company now uses butane and pentane, as well. These gases are already found in natural gas wells. The blend can be designed and fine-tuned for the particular flowback characteristics of a given well. Because it does not use water, the LPG technology shows promise as a substitute for hydraulic fracturing, and could possibly reduce the general level of criticism that fracking generates, particularly in dry counties. Wells as deep as 10,000 feet have been fracked using the LPG technology, Gasfrack told Rigzone. Energy sector interest in this method has been growing, and about 2,100 fractured wells using this technique are in the ground, with test wells under way in Texas. The most obvious advantage of LPG or gas fracking is that water is not needed, but Gasfrac pointed to other advantages of the new technology, as well. The technology is safe for the worker and removes the need to clean up the site following completion of the job, Gasfrac told Rigzone. There is little or no flaring when fracturing with the company’s LPG technology, and 100 percent of the fluid used in fracturing is recoverable for sale later. In hydraulic fracturing, 20 percent or more of the water used in fracturing the rock returns to the surface and must be treated and transported elsewhere. One significant advantage of fracking without water is that there is no need for treating and transporting water afterwards. In LPG technology, a gel containing sand or man-made materials is pumped deep into the shale formations, creating enough pressure to hold cracks open far below the surface and allowing gas to escape. The material used to frack a well using LPG technology has low viscosity and low surface tension, compared with the surface tension of water. The result is that the initial well yield is greater with LPG technology, and total yields can be as much as 30 percent higher than if the well were hydraulically fractured. After the pressure and heat turn the gel into a vapor, it moves up to the surface, where it can be collected and sold down the line. Unlike hydraulic fracturing, gas fracking allows other materials, such as salts, drilling chemicals or radioactivity, to remain in the ground. “I’m not saying that this is the Holy Grail,” Gasfrac’s Eric Tudor told Rigzone. “This technology was created out of a desire to optimize well output. We wanted better wells. It might not be the total solution, but I think it is part of the solution.” An obvious drawback of the LPG technology is that the fluid used is more expensive than the wat
And this seems to be a trend elsewhere in similar stocks at the moment. Let's face it, this is the 'silly season'. People are going on holiday, half the offices are emptying. The only PIs selling anything in O&G right now are those who are overstretched and realise they need to buy a new Lilo but haven't got the cash to buy one.
There have been Weird Scenes Inside the Gold Mine known as IGAS recently, especially that abrupt move by Brent. Maybe he got an odd idea to build himself a massive mausoleum for himself on the Cheshire hilsides. Or has an 'automated buy' just waiting for Dart Energy to slip a tad lower. That ain't impossible.
I remain in the 'unsure' corner right now, hence bothering to come, observe, and contribute to this site secure in the knowledge that as a small-time PI my written contributions count for virtually nothing in regard to the SP and its daily ups-and-downs.
One thing I DO know. The UK is sitting on vast natural gas reserves, so far untapped, and inexploitable ten years ago due to lack of the technological means. Times have changed. It is now up to the UK (in general) to decide whether they want affordable energy to recharge their iPods or not. Or whether instead to allow that green and pleasant land to become overrun by ugly bird-killing wind-turbines manufactured in Holland and Germany, whose manufacturing and installation costs far exceed any energy they may eventually produce. It's really that simple. Really.
Do you think AA could look to find some new Corporate Backers to support iGas or perhaps a decent oil company that will take a steak in them for the longer term? Only yesterday we started seeing recovery of the SP only to be brought down by loads of Automated Sells kicking in at about lunchtime. Today we are seeing the same thing. My best guess is that this is Trip Oil offloading their remaining stock. Private shareholders are not selling. those that want out are already out. With all the news flow going on around the new licence round now and the SP on its knees again, its the time to be buying but as more new investors pile in, we are being dragged back by institutional sells. Not sure how long this is going to take until it clears but its beyond a joke.
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