bpmigas rejects development plan for sengkang , page-29

Hi Mont,

My rant wasn't emotive, it was all fact.
Tell me which bits are wrong or even better let me know what Brian said to you a couple of weeks ago.

Let me guess - it went something like this " Yes Mont, everything is on track, the Chart equipment has been shipped , no wait , it's being shipped next week. Yes we've started work on site, no not exactly building anything or pouring concrete but we've moved some dirt around and painted some outlines, we put pictures in the annual report.
The POD, no we don't need it, no wait we submitted it last week. Sengkang Power repairs, be fixed tomorrow, next week for sure..."


Was i close? I have spoken to the Directors and yes they are approachable and probably all very lovely fellows ( Ian can be a bit cranky ).
But tell me over all this time ( and we can check back through many posters) has anything they've told you turned out to be true or actually been achieved.



Let me tell you and Pirhana the story of the biased perspective of a shareholder who's held this stock for more than a minute.

Back in 2007 EWC announce plans for modular LNG development in Sengkang.As i said before - massive orders thru Chart, Siemens, finance in place, production starts mid 2009.
Early 2008, a very successful share issue at $1.20 raises heaps , mid to late 2009 still touted as startup date.
Share price falls steadily to around 30c at AGM Nov2008.
No worries , we are told ,we own the land at Sengkang for the LNG Plant and in the next two weeks we will be ordering another 2*500,000tpa LNG trains and if we don't use them at Sengkang we'll whack them up at Abbot Point which will be up and going by 2010.
Hmmm this shareholder thinks - they've only just bought the land for the LNG site and they're starting production in 6 months, that's pretty tight. No worries say various Directors - it's a modular design, we'll have it up and running in no time and by the way we'll probably be paying dividends in 2 years.How good is this thinks Shamish.

Shareprice keeps dropping.

Early 2009, no formal announcements but a couple of soft stories from Indonesian media re the massive investment EWC are making in Sengkang.

I think in May an announcement is made of an MOU signed with PLN to supply LNG( which is later declared null and void by BPMIGAS as are the more recent MOU's but this is suprisingly not announced).
It turns out the land site was not actually settled in May 2009 so the AGM story was more bs but this is not disclosed till 2009 AGM and then was presented as a successfull achievement by Brian.
Now all this time Shamish ( and probably Mont,and quite a few others) are in contact with Directors, "everything is on track" is the universal response, "late 2009 for startup as promised"
The share price is rising till around July.
Now , this is where reality and EWC diverge ( once again )
Shareholders ( at least Shamish ) assume and are told the site is owned at 2008AGM and siteworks are starting in January2009 ( sound familiar ? ) and so assume POD already submitted and BPMIGAS on side.
But no, in August2008 a media report announces the LNG development again but finishes with the line that it is still seeking approval from BPMIGAS. A week later another article , this time quoting the Head of BPMIGAS saying he won't comment on the Sengkang LNG development because they haven't even submitted a POD , and as Pirhana tells us , the POD is the be all and end all of any Gas Project in Indonesia.
The share price is dropping . Shamish is concerned.
A lengthy call and emails to EWC's very approachable Directors and Shamish is told " POD -we don't need one, BPMIGAS - nothing to do with us "
Shamish is unconvinced and resolves and ask direct questions at 2009AGM.Surely these guys won't lie at an AGM.
( I think you know how this turns out)

2009AGM - Great news , Significant Siteworks starting in 6 weeks, Plant and equipment being shipped as we speak, nice pictures of white LNG tank outline on some seaside land which i now assume to not be the actual site.
In other non news - the breakdown at Sengakang Power Plant is mentioned by a concerned share holder and dismissed by Directors as temporary and insignificant.
Still all this good news and a suprisingly downbeat presentation, the Directors don't seem to want to be there.
In question time Shamish tentatively asks " Is there any reasons such as the need for liciences and permits with BPMGAS that would mean work cannot now proceed on LNG ste at Sengkang "
Answer " No"
Someone asks a question about ramping up production to 5mtpa and the crowd is distracted.
Later Shamish rephrases and reposes the same question in an attempt at clarification.The answer is the same . What more can poor Shamish do !
I know - Shamish approaches 3 Directors individually at end of meeting to discuss need for POD. In each case is told no problems , work starts in 6 weeks and btw what about these great pictures of Brian Littlechild at this Zany Siemens LNG production control room.
Shamish leaves AGM uneasy, sensing sophistry has been employed.

The sp drops immediately and keeps dropping.
Shamish becomes aware in late November that BPMIGAS are pissed with EWC's claims about immnent LNG development.
In November BPMIGAS warn EWC to stop talking about the LNG development as they have still not submitted POD.
Shamish rings Directors and is told EWC don't need POD as BKPM are looking after them ( this bs was later recycled by MONT on HC and much to my shame was supported by Shamish ).
December share price is crap. EWC still claiming everything on track. Shamish begins selling down - at impressive losses.

Late Jan2010 -shit hits fan...

EWC act suprised and claim ...probably more bs


Mont , i concede this Post may have been emotive but it is still factual even though it's obviously one side of the story.
EWC may have legitimate reasons for making claims and promoting timeframes that are obviously bullshit but i still can't imagine how or why a Company spends $120mil on equipment with a 2 year build time then 2 years later just as the plant is apparently about to be shipped. They discover the Country they are investing in has a regulatory body that requires liciences ,approvals ,permits and plans before ANY work can proceed.
And the whole time they are telling investors "everytrhing is on track "

Mont i'd love to hear from you ( or other shareholders ) on how you can reconcile the past conduct and performance of this Company and still rate this an acceptable investment.

I will also accept ' take a teaspoon of cement and harden up' as a response to this post.


Sorry to bore some but i'm sure others can relate to this.


regards Shamish