AJQ 3.13% 3.1¢ armour energy limited

Ann: Operational, Production and Corporate Update, page-18

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  1. 1,504 Posts.
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    Orion, the figure of $7.80 wasn't mine, it was the wholesale price of gas traded at the Wallumbilla Gas Hub as stated on the AEMO site on that particular day. The estimated (albeit conservative) amount that I proposed was $5/gj. When Armour and APLNG agreed on a price for their GSA in Dec 16, it was to "provide Armour delivery flexibility during the restart commissioning period" and the GSA announcement stated "agreed pricing provides Armour with cash flow certainty for 1.8pj/a over the first 5 years".
    The details of the agreement were not disclosed and I imagine them to be confidential. Your assumed current income of ~$50m could be correct if based on current WGH prices. I'm just being conservative due to the APLNG GSA.
    For God's sake, I hope your estimates are the right ones.
    As to why the SP is hesitating, I honestly can't work that out. Possibly it's because we haven't yet increased our gas production to 9tj/d yet. That should happen over the next few weeks according to the announcement. All best.
 
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