Ann: Project Restructure To Give Arrow LNG Produc, page-18

re: Ann: Project Restructure To Give Arrow LN... SF,

Don't know where you get the $6b from?

I've never had confidence in the LNGI budget for the FL project, but then it wasn't a even a tenth of your number.

AOE did put out a number for the Surat developments including pipelines for FL project, but that in my understanding allowed for two trains and also ongoing capex (well past the point where revenue will be contributing).

I'd have thought (off the top of my head) that we're not talking more than $2bn up front. And then Shell will be contributing their 30% and paying AOE milestone payments. AOE still has some cash, and can probably release some more tied up in power generation atm.

Remember too that the phasing of the 2nd train will defer a lot of expense off until CF is being generated. Also the project restructuring will have been partly to better facilate a high level of project finance.

Having said all that I'd be prepared for a 1 in 10 rights issue after FID, maybe even 1 in 5 if they want to keep balance sheet powder.

Fear is always a discounted issue to outsiders.

Some see this as a prelude to a takeover, I prefer to see it as the strengthening for long term independence. Without a doubt it adds value to either path.

EL