Proactive investors27 Nov 2017 13:04
Curzon Energy* (LON:CZN– 8p) – $32.5mm (37p) – On Track: Today’s news from the Company that the rig and equipment for the appraisal programme have been secured fires the starting gun; if the programme is successful the Company will be able to seamlessly transition to development. One of the most significant risks with traditional CBM wells is that low gas flows are observed until such times as the coal measures have been principally dewatered. At Coos Bay, however, sufficient gas flows to produce in to the gas grid are produced upon the start of the dewatering programme, thereby significantly derisking the project. While there is still significant testing to complete, that management has secured the necessary equipment to undertake the programme and is on track to meet its deadlines, bodes well for the Company's owners. We are reiterating or valuation.