why sell????, page-2

Mosaic have a couple of big factors in their favour.

Firstly, their new technique works, and they will be able to work over a number of old drill holes. I estimate they will get payable fields out of half the workovers, and it costs about a third of a new hole ($0.5m rather than $1.5m).

Secondly, they have enough cash in the bank not to worry about things.

Thirdly, seeing they own pipelines and a LNG plant already, they can monetise new discoveries easily.

Finally, they just found a field that will probably be worth $30-$45m, given that a P10 number of 90 BCF probably turns into 30 bcf, and that means $30-$45 of revenue over the next 2-3 years, depending on prices.

If I was MOS, I'd be looking long and hard at leasding a LNG tanker, loading it up, and sailing for the US as quickly as possible.

Ian Whitchurch