RE: Regular Joe Paletto - a corporatation can not promise anything - that would get them in a world of trouble with the regulators. You should view the word "target' as a 'promise'. In April 2012 the company said they would target 10-15 Tcf of net recoverable resource then increased that number to 15 Tcf in January. Based on Sam Wahab's research and Edsion's the area CBM Asia has accumulated has reached the 15 Tcf target already. Promise fuflfilled. I went to the corporate presenation last month and the guy from CBM Asia said that they have rights and options on even more acreage and are looking to farm out acreage to reduce capex and get back down to the 15 Tcf target.
Reading through the Kutai West NSAI report what struck me as a key figure was the 50% chance of commericalization. This number is incredibly high for the stage of exploration the block is in. This is a frontier-new industry play and NSAI is giving the chance of commercialization 50%!! This was another main point at the presentation as well. Low geoligcal risk with low capital risk. These guys are find gas at less than 1 cent per Mcf, getting a certified 50% derisk rate in a market where gas prices are $6-15/Mcf. I have invested and reviewed a lot of different oil & gas plays on the TSX and AIM markets and this cost-risk equation is a standout.
All the company has to do now is figure out how to finance the exploration and overcome the market's dilution fears. At the presentation they said the company was looking at the possibility of listing on AIM as the UK investors understand CBM and Asia much better the Canadian investors. That could be a way of limiting future dilution - I don't know. However markets for junior resource companies remains very weak.
Still a lot for managment to do and it will take a lot of time expect ups and downs.