As analysts are now predicting a global oversupply of LNG, perhaps Arrows best value lies in coal to liquids technologies. I know of two Australian companies developing this method using two different technologies. Linc uses coal gasification which is then used to synthesis diesel. Regal Resources uses an underground high pressure water method. I think Linc is further advanced and claims in its video promo that it can produce a synthetic diesel for about $18 a barrel. So, irrespective of whether either of these two companies currently have a viable technology it is only a short time before someone somewhere nails it. So the way I see it, a company with large coal reserves close to infrastructure would have to have a lot of potential. Anyone who was to takeover Arrow at the moment before this looming potential is fully understood would be getting an absolute bargain. I dont know for sure if Arrow or Shell have investigated this but you would think that they are keeping an eye on emerging technologies. I would expect Shell is be developing its own technologies.
AOE Price at posting:
$4.42 Sentiment: Hold Disclosure: Held
