Ann: Investor Roadshow Presentation, page-24

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22/09/15

19:45

Post #: 16039180
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Originally posted by locshare11 ↑

Let assume og prices remain at $45poo and $6.00 mbtu

There're two possibilities: supply gluts and gas crisis.

Supply gluts. There're too many big gas projects comming online. This is short term but how long can smaller players have the luxury to wait without any production gears to protect shareholders. Low oil prices do hurt market sentiments that's why you always see a pool of shorters when the sp. heading north.

Gas crisis. I have seen both big/small projects slowing down. If they stall for too long. Can conventional players quickly ramp up their production according to prevail market conditions. DO they have enough capital to work on their existing projects. Will they lose out to bigger players.

So the ideas to store gas and to store oil in the formations which are better suited in both environments.

I know DLS, AGL, ORG are having potentials but by the time I wait for oil to recover. BRU might become the top tier player. OSH is no-match for AWE if you want to weight on OIL.

There's also another emerging bio-gas business that can work extremely well in both environments. GDY

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And how exactly will Bru become a top tier player - assuming as you have that oil stays low.
Where will the capex come from to develop and commercialise . What is their cost of production on their oil assets. Last I looked the returns for the money sunk was very poor.

DLS Price at posting: 49.0¢ Sentiment: Buy Disclosure: Held
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Ann: Investor Roadshow Presentation, page-24

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