QLD gas acreage, page-7

Ash 

Firstly, I did not aim that at you.  If you read it, I was referring to "that guy" i.e. the author of the Macrobusiness article.  If you read it as directed at you, I do apologize, but that was not aim.  My history on here would agree with that statement.  

The gas from the new permits in QLD will be allocated to domestic users.  That is part of the agreement for the new blocks.  Yes it is co-mingled, but that is the nature of the developments.  I have worked on these blocks, unsuccessfully I might add, and that part of the deal will be scrutinized.  An individual project will not justify the cost of 100% infrastructure to get where you are suggesting.  

The gas price is high largely because all the cheaper gas has been produced.  The cost of getting the new gas to market is higher and if the prices suggested in that article are all that is available, then a lot of gas will remain in the ground as it is not commercial viable to develop and get a return for shareholders.  There is a very good slide in the more recent COE presentations that highlights the cost base for the east coast gas markets.  Please have a look at that for reference.  (let me know if you cant find it)

I would have thought that as a CTP holder that you would be happy with $10 gas.  That will be needed to justify the developments in the Amadeus basin going froward.  It is the same for a lot of the newer gas developments being pursued at present, i.e LCK, COE, STX, RLE, COI, GLL, BUL etc.  plus all the incumbent csg guys, where reserves have been downgraded due to poor performance of gas reservoirs.  

Cheers AL

For clarity, I have sold my position in CTP, as I see better opportunities in the gas market at present.  (not seeking to cross promote)