CSGguy good evening,I don't know about ERM having much...

CSGguy good evening,

I don't know about ERM having much confidence in MEL board, about as much as we have I'd expect....

However, whether they are READY to take on the issues of MEL at this point is probably the issue.

I was talking with a fellow HC poster recently and said I thought they would stave off acting on MEL as long as they possibly could, and he felt they would not be keen on seeing current Board members deposed.

I agree, but only in the sense of ERM not 'bringing it on' per se.

Should Board members BE deposed, and I think this is increasingly likely, (funny we are having this conversation on the EPW thread, oh well), then I do think EPW would act in some form to better protect/direct their investment in MEL.

Why do I not think ERM has bothered to shake out the MEL management before now, as they seek to do across at EGO?

I do not believe the ERM Power business model in the eastern states, (going great guns by the way), would welcome ANY backlash on environmental grounds, if it could be avoided.

I also think the St. Bakers were expecting the current moves by the Abbott gov't, and will let the positive angles from this work as much as possible to their benefit before taking on unnecessary grief/expense/time consuming initiatives, when they already face this over at EGO.

***At this point may I point out that the environmental impediments argued against the development of CSG in the CMB were largely a non-issue in the EGO tenements. Over there you are talking about broad acre farming, no irrigation to speak of, relative isolation from any major centres of population, and it really is simply as I see it that they feel Empire can be run a whole lot better, and plans put in place and enacted more swiftly and effectively.

Yes, you are correct that they (EPW) have only begun to build their stake on the EGO register recently , compared to their longer presence at MEL, however don;t forget they have been JV partners for some time, so in that sense, they have been required to exercise considerable patience, and for some time, just like the EGO shareholders.

For sure, as you say, 20% exposure via the JV means just 20% of cost overruns, but as some posters here back in the ESG days talked about "opportunity cost" say, I think EPW reckon now it is high time their JV was a whole lot more rewarding, and promised something tangible.

I believe CMB gas will fire a future ERM built generator in northern NSW, and that its gas will also be piped to ERM customers; but maybe not enough ducks are lining up in NSW as far as ERM's plans go.....yet!

Rest assured, I hear them quacking....

Rgds,

Lilac

Disclosure: CSG related stocks held - EPW, MEL, LNG, WCL, ROG