Australia is in the midst of gas crisis, as an East Coast shortfall continues to drive up prices. A solution is needed to this problem and quickly.
Real Energy (ASX:RLE) is positioned to take advantage of increasing demand from East Coast gas users and provide a much needed fix.
The company looks to be in possession of one of the largest gas resources uncontracted on the east coast and has demonstrated consistent improvement in its flow and pressure rates at its Windorah Project’s Tamarama-1 well.
Given recent flow results, RLE looks to have a good shot at establishing what could be large shale resource in Australia.
RLE has a large acreage position and a significant amount of gas throughout its tenements, which has not only attracted Credit Suisse to become a major investor, but has also caught the eye of potential sales partners.
Gas sales agreements have already been signed with Weston Energy for three petajoules gas per year for a period of five years. This deal followed a MoU with global giant Santos for gas processing – a big step in RLE’s efforts to commercialise its assets.
The information on this page should not be the only trigger for your investment decision. Click on the links below for a more in-depth and informed examination of the company. We strongly recommend you seek professional financial advice whenever making financial investment decisions.
RLE represents a solid opportunity to take a calculated risk on a company with a good chance of striking a huge billion-cubic-feet gas resource onshore Australia.
If it can do so, this $21 million capped company with a healthy bank balance, could be in line to reward investors’ patience.
RLE Aims to Provide East Coast with Gas Shortage Solution
Nov 25, 2019
Junior oil and gas explorer and developer Real Energy Corporation (ASX: RLE) has struck a crucial deal in its quest to attain producer status, having been awarded a prime chunk of Surat Basin coal seam gas (CSG) acreage.