Highlights of STX’s quarterly report to 31 December, 2016 (released earlier today) commences , on page 1, with key achievements in respect of PEL 96 (66% STX, 33% EWC) and lists, in part, the following:
Cash on hand of $6.4 million at the end of the quarter – fully funded to meet forward program
Scoping and preliminary design confirms that development of an independent, low cost modular gas processing and compression facility in PEL 96 (Demonstration Facility) is technically and commercially feasible
In principal agreement to collaborate on the development, funding and operation of the Demonstration Facility with a leading midstream gas infrastructure owner and operator
Progressed discussions for the sale of gas produced by the Demonstration Facility with significant market interest to contract further gas on a full production basis
On page 4, STX also refers to PEL 96 gas being converted to LNG for the export market.
Reading between the lines, the reference to a (lng?) demonstration facility being developed and funded collaboratively with a leading midstream gas infrastructure owner and operator may refer to EWC. Has anybody heard anything about this and/or has some further information which company may be involved?
In any case, the fact that STX/EWC forward program is fully funded and that STX expects 1TCF (of its 4.5TCF net) over 20 years to start production in 2017/18 looks promising for EWC as it will have 0.5TCF (of its 2.25TCF net) over 20 years ready for commercial development as well.
EWC Price at posting:
21.5¢ Sentiment: Buy Disclosure: Held
