The Alcoa pre-payment of gas supplied by EGO is due to be fulfilled around Sept this year, according to EGO statements,
we now have the RG plant operating at in excess of 90%.
After Sept 2015 all the gas produced at RG will be available for sale at market prices.
we know that under the Alcoa GSA, they agreed to 15pj, of which less than half was at the pre-paid price, and the balance at market/commercial rates. not sure what price though.
Since that deal was done, EGO has got the plant running reliably, it has obtained independent certified reserves, and has determined to drill and prove-up additional resources to put through RG.
We know Alcoa wants as much gas as it can get its hands on.
we don't know the pricing of the Santos contract, but be sure it will be at fat market prices- Santos won't be giving it away.
So whats to stop Alcoa prepaying for further gas?
the balance of the 15pj was to be at mkt prices, or whatever.
whats to stop that deal being rewritten, such that Alcoa can again prepay for its gas, probably at a higher price than the original Tranche1.
A win/win for all.
And EGO could use that funds to repay ERM quick smart !!!
EGO Price at posting:
0.5¢ Sentiment: None Disclosure: Held
