Ann: Arrow Awarded Licence for Surat Gladstone Pi, page-6

re: Ann: Arrow Awarded Licence for Surat Glad... Peter,

From putting the pieces I see together, I really think AOE is trying to limit the equity they raise at the corporate level.

I can't see too many wanting a stake in the LNG plant without a stake in the permits. As for the permits imho we've farmed down enough. I'd prefer say a 1 for 10 rights issue, even a 1 for 5 to further farm down.

I think project debt might be only being offered on excessively onerous terms. BG seem to be brushing the matter aside by saying they're prepared to do it all with equity and corporate debt if need be. STO appear perhaps to be hoping the debt market improves. AOE have shown themselves adept at deals and financing in the past. At some time I might yet bet against this bearish market, but atm just waiting for the general bearish market wave to pass over.

I'd say once we get the big issues around the first train, esp the financing, clarified the we will soar like no other, as our lead in time to LNG revenue is so short.

EL