why bg wont make a bid for aoe, page-9

Sloeb,

I recall some of those QGC flowrates (with simple completions) were awesome. However technology is moving on, and gas wellhead costs must be well under $2/GJ in large areas of the Bowen by now, given the certification and the market for gas there. Indeed AOE's Moranbah costs can't be that bad. I suspect a lot of gas will be produced at under $1/GJ, which still leaves the LNG plant as the predominant cost element.

The cost of pipeline from the Bowen to Gladstone is a red herring imho, just look at the map. In particular take BOW's Comet block - it is closer to Gladstone than the Surat fields, and in fact the Surat pipeline will pass by. Out west they are routinely talking comparatively larger distances from gas field to LNG plant.

There's no doubt BG got a sweet deal, but I suspect you are doing yourself a disfavour by reading too much out of one conversation.

They should be usefully sobering words however for those chasing their csg dreams on the outliers with roo pasture (and big deals with the Chinese,LOL).

EL