ECU 3.85% 25.0¢ eastern corporation limited

gas is now flowing

  1. 64 Posts.
    With Eastern Corporation I do know what is happening, and I bought more shares last week on a pull back.

    There were two major releases to the ASX last week and the company reported:

    · gas is now flowing from all five test wells
    · extremely high gas pressures in all five wells, a sign of large quantities
    · detailed discussions are taking place with end users as buyers of the gas
    · gas will be sold at the wellhead, therefore ECU does not have ti instal expensive pipes
    · ECU has employed a team of experts in the field of CSM gas production
    · developing about another ten CBM wells in the area
    · addressing funding requirements
    · drill two oil exploration wells in an area where oil was encountered while dewatering was happening
    · the ECU board plans to enter into other resource based projects over the next few years and is fairly advanced in this area now.
    With a report like that one would have expected a flurry of excitement, but no, nobody apparently read the report.

    They've got the gas flowing, major companies want to buy it, and they are going into other projects.

    I had a meeting with the MD in my office yesterday, he just dropped in to show me some photos of the gas fired into the air from a 4 inch pipe in a paddock
    adjacent to well no. four. It sure would have lit up the night sky of Longreach.

    I treat this as a longer term hold, do not, repeat do not sell yet, as the best news is yet to be announced.

    Read the last two reports. I will not be selling.

    Cheers for now

    David Bird
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.