Three gas stocks had updates this morning – all failed to excite the ASX
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An earlier version of this story incorrectly implied Red Sky Energy had news this morning.
Three ASX gas stocks released updates this morning and none got the enthusiasm that greeted their peers earlier in the year.
The oil and gas sector has rebounded from its COVID-19 lows resulting in substantial investor interest in small caps in this space, and many of them becoming multibaggers in a matter of weeks.
Two such examples of such ASX gas stocks that were multi-baggers off the back of news earlier this year were Red Sky Energy (ASX:ROG) and Talon Energy (ASX:TPD) which in the March quarter gave estimates of prospective resources at their respective projects in Australia.
But today’s trio updates of ASX gas stocks failed to get investors excited.
One of these was Queensland State Gas (ASX:GAS), despite confirming Coal Seam Gas (CSG) was actually being produced at its Reid’s Dome, at depths typically below the 1000m limit for CSG production.
Chairman Richard Cottee declared these results were “unambiguously good news” as the well would likely contain more CSG than had previously been estimated.
“These results prove conclusively that we can produce economically at depths exceeding 1,000m naturally, unaided by any form of stimulation,” he said.
“We can now show that coals at these depths in Reid’s Dome need to be included in assessments of the field’s production potential, right down the full depths of the wells.”
The second was another Queensland focused stock Gallilee Energy (ASX:GLL) although it is exploring for natural gas.
The company says each of its six vertical Glenaras wells were now producing natural gas and current rates were approaching 80mscfd (thousand standard cubic feet per day).
It expects a further increase in natural gas rates after completing workover activities on two other wells in the next week.
Rounding out the list was Alaska-focused company 88 Energy (ASX:88E) which received initial assays from 5 out of 18 trims from the side wall cores.
Side wall cores are alluding to rock samples from the well’s side walls obtained to determine the presence of hydrocarbons. 88 Energy says two out of five have confirmed the presence of hydrocarbons.
The company expects to release results from the remaining 13 trims in the coming weeks. After that it will begin a broader geochemical analysis program and analysis gases collected in isotubes during exploration.
Of all these shares, the “best” performer was Galilee and it flatlined in morning trade.