Waitsia Phase 2 Cost, page-23

Cheers Al99. Appreciate your input, as always.

Sounds like we are on a similar wavelength re: costs. I think I'm roughly in the ballpark with my estimate and anyway, capex is not the biggest sensitivity for a project like this because it will have relatively high EBITDA so will pay back capex fairly quickly. It's more sensitive to opex and that's what I don't feel like I have a good handle on. Actual field opex should be very low due to super productive wells, low overheads and simple processing but that pipeline tariff of $1.80 (as reported by AEMO) has a huge impact on the economics. If I had a genie who could give me one number, it would be opex!

I am keeping in mind the higher gas prices for Casino and BassGas but I am also aware that there is a fair bit of capex required there too. So I think that will balance out the higher price to some extent - in fact, I'd be pretty concerned if they weren't getting a higher price because the Bass Basin in general seems to be at that point where diminishing returns kick in due to higher costs and lower recoveries than previously. Higher prices should keep it chugging along for a few more years.

The biggest value driver I see for AWE is going to be expanding Waitsia beyond Stage 2. Reserves upgrades and potentially some new exploration of similar prospects.