is beach sniffing around?, page-6

goodaye Gobris,
without a shadow of a doubt, the Kimu asset held by MOS is a sleeper.

A couple of years ago that asset was ignored.
Now with PNG LNG about to get underway, the Kimu asset is looking like it will be quite valuable to MOS.

From memory MOS said that the Kimu interest is in the books at around $500,000 or NIL - I simply cannot remember - but it was b-----all.

If any one has any doubts about the potential of this asset, just have a look at the OSH reports and presentations.

OSH is fixated on developing a second phase ie after PNG LNG construction has begun, they intend to begin phase two.
OSH wish to monetise those gas resources which are not part of the PNG LNG project.
OSH continually state that the big profits to OSH (ie the cream) will be building another LNG train, methanol facility etc, utilising these other gas resources.
Specifically included in those is Kimu.
OSH also state that it will look at acquiring other gas assets in PNG to use in their second phase.

The issue of whether MOS should retain or sell its interest in Kimu is a seperate issue.

I reckon you guys are right, and that MOS will sell its kimu interest.
I hope it waits, because in a couple more years, OSH will be very keen to grab these big gas resources. It should be worth more than the pocket money ascribed to it in the MOS accounts.

cheers