Page 28 indicates Waitsai not expected to produce significant gas production until 2021. Page 29 indicates they are expecting significantly higher gas prices on the west Coast at that time.
In the mean time, on the East Coast, they are expecting significantly higher gas prices under new contracts from 2018. In 2016, AWE made $44M on $72M sales from SE Aust. They are expecting significantly higher prices when recontracting. I estimate they are getting just over $4M per PJ now. This increase could be quite significant for cash flow. I am currently trying to do research as to what price they could expect to contract it for.
ACCC has recently done a report on the East Coast Gas Market concerned about the impact the new LNG facilities will have on prices in this market.
Regards
SP
AWE Price at posting:
61.0¢ Sentiment: Hold Disclosure: Held
