re: Ann: Letter to Shareholders - Update on L...
out of interest I was reading some of the STX details of their contracts.
they tell us the qty of gas, the amount of prepayments, but no price.
But they also suggest a contract value, even though the pricing is variable!
What also struck me was that STX has announced GSA's with three customers, Orica 250pj and Austral and Orora total 42.5pj. STX share @ 67% is 196pj.
WCL GLNG GSA totals 475pj - WCL share 242pj
WCL at 26c is MC of $115m, and STX has MC of $102m.
YET STX has not only produced NO GAS, but has not even proved that their gas can flow.
WCL wells have been producing for over 15yrs, and currently has been consistently producing 12tj/d.
************************************ (July 2013) ORICA GAS SALES AGREEMENT (GSA)
The timing and quantity of the gas which could be supplied to Orica reflects a balanced risk and reward profile for both parties that incorporates a portfolio of production-cost based, fixed/indexed and market linked pricing. The value of the gas expected to be supplied under the GSA over the term of the agreement should be substantially in excess of $1 billion, with initial gas supply anticipated to commence in 2017.
WCL Price at posting:
28.0¢ Sentiment: LT Buy Disclosure: Held
