So with earnings in 2013 @ P/E of 18 at current price, how much...

So with earnings in 2013 @ P/E of 18 at current price, how much further growth is expected from AOE.

Note the report says at full production. They will have to clarify full production. Presently the only 'concrete' plans are for a 1.5mtpa plant with supply to LNG. Is someone able to confirm this was the assumption in the analyst report?

If it isnt, then you can double that profit outlook for the additoinal 1.5mtpa plant that they are currently undertaking a FEED for. Not to mention the expected synergies that they will get from being alligned with Shell - that is off take agreements for gas sales to their Glad LNG plant should it go ahead.

At this time I wish to issue a slightly reserved apology to EL. The Surat acreage Arrow has is a little more extensive than I first thought and the recent plan (ala propaganda) on the Surat basin project has drawn my attention to how much of this CSG sweet spot they actually have.

Being first cab off the LNG rank will also have some other benefits for them, such as buying the other Gladstone hopefuls gas as they also ramp up their ops. This kind of benefit is a first movers advantage as Arrow will not be off loading their gas to STO, ORG or BG as they will already be utilising it for LNG. STO, ORG and BG will be bloated with gas and will have no choice but to put it to market as they ramp up their operations.

Arrow has many other great things going for it such as Braemar ownership increasing. I would imagine that along with a first mover advantage, the extra gas on market will be able to be utilised in facilities such as Braemar and increase power generation revenue. I also see power gen increasing in a few years time from gas as an ETS changes the current market dynamics hitting the heavy CO2 producers.

I almost regret going over Arrow again with a fine tooth comb, because now I have to find some more money to invest in it. This one is a keeper for sure.

SF