What if US$7 - $9 mmBtu becomes the new normal trading range for gas to Asia through to 2020?
Then this calls into question the viability of Pandora even using low cost new FLNG technology & PNG's geographical proximity to North Asia.
The CMT stated delivery price model is aimed at US$8 mmBtu and therefore might not end up being economically viable.
Seems to me that the Capex & Opex costs for this project need to come down 25% so as to deliver gas closer to US$6 mmBtu.
Andrew Dimsey certainly has a challenge on his hands this year to somehow make progress in this environment.
I would like nothing more than to place an order right now for 200000 shares at 5 cents which might be a good move seeing as cash holding equates to approx. 3.5 cents per share.
However, I need to be convinced that Pandora's economics still stack up in this new environment, as the US shale revolution isn't going away, oil likely to stay US$60 or less for the forseeable future & gas seems to be cheap & plentiful in the coming years!
Just my opinion - more than happy to be proven wrong or hear alternate views.
CMT quarterly end of next week!!
BDM Price at posting:
6.0¢ Sentiment: None Disclosure: Not Held
