Peninsula has put a big focus on the coal seam gas story after the arrival off-shore energy companies last year. Cheque books came out.  One reason why our coal seam gas is in high demand is that the gas is rapidly becoming a global rather than a local commodity as  LNG technology advances. (One of the interesting slow-growth and high value stories in this category is a company called  LNG which specialises in LNG technology)

Another is a coal and mine gas company which is currently taking advantage of gas prices prevailing in Europe at five times the levels achieved here where near-glut conditions are focussing attention on LNG exports and the proving up of coal seam resources.

The interesting point  that this company is well ahead of the pack in Europe having bought up exhausted coal mines in the northern border region of France for what now looks a snap price. All coal mines produce gas which is why so many mines were dangerous so a strategy of collecting the gas rather than the venting it turns a liability into an asset. This group also acquired leases through France and in Tuscany where deep coal seams or low quality ignored coal can still hold substantial gas.

 The contingent estimated volume is put at 8-9 Trillion cubic feet  -  twice Origin’s confirmed resource. When sold at European prices even a fraction of this volume will produce heady cash-flow.  

Sales have started and income is better than expected, but as with the second tier coal seam stocks here, the next stage is the steady drilling of hundreds of holes to confirm continuity, depth,  volume, water, flow quality etc.  

The broader point is that Russian gas which now supplies many European countries, even the UK, is not inexhaustible. Some say that the peak of Russian gas supply is within 3-4 years which may in part explains why they are determined to sell it to Ukraine at prevailing prices. 

So little is known outside Russia that this is guesswork, but since  Putin knows his resources (having done his dissertation of Russian energy security) it is a fair guess that this situation has his daily attention.  Peak gas or not, Russia relies heavily on oil and gas sales for its national income. Now that the Russians have tasted western consumer goods and freedom, any going back to the days of communist deprivation, queues and cuts of week old pork will not be well received by the lumpen consumerat