Top-up double standards., page-5

Hi Pinnacle,

Thanks for your post, makes sense.

The thing with the TOP-UP clause is the uncertainty its created. Nothing is a set in stone ratio. This is nothing more than a OPEN ENDED CHEQUE BOOK saying fill it out for what you want when the SP rises at the agreed time of repayment.

This is SHERS money at stake here and I wonder how many drills do we JUST GIVE AWAY on an open deal that has no end to it. Do we stay poor with limit funds and scratch our heads and bums asking how we pay off this PREPOSTEROUS thing called the TOP-UP if the SP rises absurdly. (Thanks Topender for that word) very apt here.

I want to see better value for SHERs hard earned profits instead of being given out wily nily in these sort of clauses thay over pay what fair value of a sale is. If its interest then its set at a rate not to a wild SP hike that spikes with ferocity that does not reflect the real value of the sale. The TOP-UP overvalues the deal and makes a mockery of the FAIR VALUE policy in place. Is this done just for ERMs benefit or would it apply to others too.

On a discovery it will take time for us to market it and do we need to do with it, get sales, add the infrastructure required among more funding and the ELEPHANT is scared to dip his toes. Even if the ELEPHANT emerged and say the NO CASH COMPONENT arrived and we had discovery, on reduced sales due to the ELEPHANTS share, how do we manage to still pay it back ??????? More terms and conditions adding more to the repayment over a longer period.???? Forever in debt unless sales are bumped up to make ends meet.

Have we proved enough to the sector that EGO is a viable commodity to invest in.???? Why didn't Macquarie add any into the program.????? Do we have more to prove.??? Depletion of the D sands what sort of message has that sent out to the sector of the Perth Basins potential for reliable long term supply.?????

Maybe we need to change the style of our wells to make them more attractive for the gas to stay longer, change from conventional to unconventional with a lateral going along strike of the seam for a 1000mtrs piercing the heart of these gaseous zones for longitivity of flowrates for years to come not the short term. Those in the US cover an area of 640 acres to drain from, whats the coverage for a conventional in tight gas.??????