Appears to be a heck of a lot of gas for  these 2 little companies to prove up...some comfort in knowing they have brought a seasoned fracmaster on board...a major JV may be in the offing...jmho

view digital presentation here:
PTR.V has a 12% stake in the 47% Production Sharing Contract with Petro China, Enviro has the other 81%, with TerraWest holding the remainder
Today Petromin announced adding a FracMaster to the team as the Vice-President of Field Operations

"China Begins To Tap Shale Gas Despite Daunting Technological,Environmental Hurdles"
New York Times Oct 14/2011

For valuation Assessment purposes I am providing a copy of a dialogue I started on the PTR thread regarding possible vauations for TerraWest, that may or may not be extraplated from this report:

Regarding the press release last night issued by Enviro Energy covering the monster upgrade of estimates for the total Undiscovered Original Gas-in-Place ("OGIP") in the Liuhuanggou Production Sharing Contract ("PSC") area situated in Xinjiang, China. The upgrade is the result of an independent engineering report ("NSAI Report")prepared by Netherland, Sewell & Associates, Inc. ("NSAI").

This report comes from a well established and globally respected engineering firm and meets all International reporting standards....Except in Canada, where we have the 51-101 compliance reporting standard and this is why the same press release was not issued by PTR for anyone wondering, I learned this a while ago when I always wondered why O&G Co.'s in other countries could report these engineering reports but Canadian companies could not.
We have more stringent reporting standards than the rest of the world...oh well , dosen't change the facts, ask FEEC for one example or Dart or Green Dragon...ect, who operate in China as well, but are either listed on the AIM or in the U.S.

While I am glad to see EE did not try to attach any percieved valuations to this report as is the responsible practice.

But...there is nothing wrong with us here pondering the valuation we could attach to this report as we have a material stake.Right?

Having said that, lets consider that in a natural gas glutted market like North America with over supply and decreasing demand environment, a shale gas property based on the latest acquisitions (Take Exxon acquiring XTO) goes for about $1 Billion a TCF in the Ground.
Now consider this, the current price of natural gas in the North America fetches approx. $3.50 a MCF, then after that, the producer has to add on the value addded tax and the royalties tax before profit.
Hmmm, no wonder the drills are slowing to an idle and everyone is switching to the hunt for oil again.

So how much value per TCF could one attach to a similiar resource (with I might add,required infrastructure in place)except in a under supplied market that faces an explosive  increasing demand scenario.
Now consider that not only does this market offer absolutely no value added tax and no royalty tax, but rather just the opposite in the way of unconventional gas exploration & development incentives & tax holidays in China................
that equate to approx. $7.50 a MCF as has been discussed here many times.

So with the R.O.I. (return on investment) obviously to be more than double would it be fair to suggest TWE is worth $2 Billion Per TCF

I would certainly think so.

Bottom line, any Major I.O.C  (International Oil Co.)  interested in Shale Gas and wants as much value that they can squeeze from it, now realizes the only place in the world today to extract that kind of value is in China, just for the demand equations alone.

Some perspective regarding the size of this resouce:

Disclosure; I hold both Petromin & Enviro Energy shares in my portfolio

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