The loss of AGL support is an issue. I note they still have a 75% option on the Barossa project if they do a confirmation well. Perhaps they see this a better option. They also still own 10% of the company which was originally acquired at 40c/share.
Leaving TEY dangling without an active partner for the confirmation well may allow AGL to come back in the future on better earn in terms (i.e. 75%).
AGL aren't flushed with cash like Origin. In the current environment, they are probably happy to sit on the sidelines until some clarity about the future of the EGS projects is found.
At current prices, TEY is like an option on the EGS industry. If GDY can get some runs on the board and investment $$$s start flowing into the sector, then TEY should do well.
Assuming TEY EGS becomes a future energy source, the value of that energy is currently priced at next to zero.
TEY Price at posting:
8.4¢ Sentiment: Hold Disclosure: Held
