With the oil and gas sector currently in the spotlight due to increasing East Coast gas prices the sector is seeing reasonable growth. Government subsidies are helping small explorers realize their production ambitions.
Due to the prior downturn in gas prices the drilling and completion costs have been heavily challenged with some companies reporting costs have reduced by as much as 60%.
$RLE are cashed up with low cash burn and are currently proving up their basin centered gas play in the Cooper Basin with the current focus on the Tamarama-1 well which has been seeing improved gas production rates since the installation of a plunger lift system to dewater the upper formation.
Chart wise we have come off a previous base at around 8c, overshot somewhat and have now consolidated around the previous resistance at 10c. With news flow expected over the coming weeks and months regarding well flows, commercial agreements and asset acquisitions there are several potential catalysts for share price appreciation. Short term I think we may see the a breakout with 14c the first target, with gas resources of over 13tcf longer term successful development could see this company become a mid cap although plenty of capital will be required along the way.
Due to the prior downturn in gas prices the drilling and completion costs have been heavily challenged with some companies reporting costs have reduced by as much as 60%.
$RLE are cashed up with low cash burn and are currently proving up their basin centered gas play in the Cooper Basin with the current focus on the Tamarama-1 well which has been seeing improved gas production rates since the installation of a plunger lift system to dewater the upper formation.
Chart wise we have come off a previous base at around 8c, overshot somewhat and have now consolidated around the previous resistance at 10c. With news flow expected over the coming weeks and months regarding well flows, commercial agreements and asset acquisitions there are several potential catalysts for share price appreciation. Short term I think we may see the a breakout with 14c the first target, with gas resources of over 13tcf longer term successful development could see this company become a mid cap although plenty of capital will be required along the way.