Ann: Minerva Gas Plant acquisition, page-2

I'd say if we are not already in the driver's seat we should be damn close to it.



The Henry development well is a no brainer now and as Jake pointed out - just two partners now us and Mitsui. I believe the capital for that well was included in last raising. Wonder if it will move up from "middle of CY 2019" more towards late CY 18???

The purchase of a gas plant however was not. Any ideas as to how much we are shelling out for Minerva? May explain the Taylor Collison Gas Day presentation. Might need a CR for that. Also a little nervous about the expertise required to operate and maintain it. Proximity of APA pipeline may even suggest APA might partner in too given the Orbost relationship. Might also put Mitsui into a front runner for farm-in for Manta??

A little bit of history on "value" of Minerva
https://www.bhp.com/media-and-insig...-approves-minerva-gas-development-in-victoria

Also some interesting commentary here on costs per GJ offshore eastern Australia.

"A decade ago offshore domestic gas projects could be developed for less than A$1.00/GJ of 2P reserves. Costs are now up to A$3.00/GJ, a three-fold increase."


"The overall cost of the Turrum-Tuna-Kipper project in Bass Strait, including the gas conditioning plant, is approximately $5.6 billion to develop 400 MMboe of oil and gas, with a development cost of $14/MMboe or $2.45/GJ, notwithstanding that the development will only maintain, not increase production through the existing Longford plant."

"F&DC should not be confused with break-even production prices. F&DC do not include operating costs, royalties and taxes or take account of the time value of money. Break-even production prices are generally at least twice F&DC for a development."

http://www.aie.org.au/AIE/Documents/APPEA-Cost-Report_Final.pdf