re: Ann: Letter to Shareholders - Update on L... Goodaye Kit,I...

re: Ann: Letter to Shareholders - Update on L... Goodaye Kit,
I have taken the Chairman's statement that 40tj/d will generate $50m revenue to WCL, as being based on the current oil-linked pricing.
he does qualify that, by indicating that revenue will be predicated on the future price of oil.
I really don't think that he would have given that number of $60m, if he were basing it on some pie-in-the-sky oil price figure in the future.

I would also mention that it is my understanding, that the price of oil is not the sole basis of the price which WCL will receive for its gas. I think the oil price is but one of the variables making up the GSA gas price. I don't have any further details of that. But it is my understanding that if the price of oil goes down, so does our gas price.
Of course, the WCL J/V will look at hedging the oil futures, and the US$. I asked that question. Because I gather the GSA is in $US.

I can also state that virtually all of the GSA's announced in companies in which I have had an investment, NEVER state what the contracted price is. -- NONE.

example - Empire Oil & Gas contract with Alcoa.
All those contracts which Strike ENergy has announced with Orica, Austral and Orora - none disclosed the price.

I have asked the question re pricing, and was told it was confidential, but referred back to the AFR article about month ago, which suggested that the pricing was $8/gj - and that fits in with all our figures.
It's funny- whilst its confidential, I think WCL is not so subtly telling us what the pricing is?

so I think we do have the numbers for both the pricing, and the production. The current production is 12tj/d - and the target production is 65tj/d, ramped up over several years.

you are right that there is no absolute guarantee that WCL will produce 65tj/d, or that the price of oil will achieve or maintain a particular level.
But hey, that's why we are on this forum, rather than leaving our money in fixed rate Govt Bonds.

cheers ( and you are quite welcome to purchase as many WCL shares as you can)

PS - Energisme - I hear Barry O'Farrell has been nominated for the Board of Metgasco - now that he is no longer conflicted!)--LOL

cheers