See my "metrics schmetrics" post over on ESG. The GJ/$ valuation needs some context.
That argument however, panders completly to your argument that Arrow is completly and utterly being underbid for.
If we are to look at what Shell/Petro are paying in terms of reserves for their potential 16mtpa plant, Arrow is well and trully undervalued. Lets assume the first 8mtpa is going ahead, that is approximately 11,200PJ. If Shell are aiming to take this from just Arrows acreage, then you are looking at $0.30/GJ, which for Arrow considering its scale and size is ridiculous. Absolutely ridiculous.
Especially when we are talking SPAs in the order of $6-12/GJ,
Bloody typical Aussie fashion of underselling ourselves if you ask me!
SF
AOE Price at posting:
$5.23 Sentiment: Buy Disclosure: Held
