you beauty - new gas agreement glng, page-66

Yes it's never been a particularly productive field, the red-headed step-child of the Qld CSG industry, passed around between various unwilling relatives.

Nobody could really make it work at $3-4 gas prices, so everything was done on the cheap and any major expansion is going to have to deal with that.

On top of that, WCL and MPO have still not conclusively shown they can make this really work with laterals, so the market's hesistance is definitely understandable.

The GSA is definitely the potential game changer, although I guess they are likely to get a lower gas price from STO than they would have from a smaller buyer. STO will pay less because of the security of such a big deal, and the very important fact that there appear to be no supply provisions on WCL. If they don't produce they don't pay penalty rates.

So if they're getting a lower rate per GJ, that means they have to make up the difference was volume of gas, which comes back - once again - to well performance.

So it's even more important now that WCL demonstrate good flow rates from their wells. I will be watching, I'm sure many others will too...