Here is a lightly edited transcript of MINs annual results presentation...see link for original trim. VIDEO Journo/Analyst:
On the gas, pretty unbelievable discovery…You must have a number how big it is…What’s your thoughts?
CE: I want to build a gas plant.
Need to do some development holes (ed note. Note he did not say "exploration", he said "development" - big difference) we put some step out holes around it first and IT WILL GROW in size (CEs emphasis).
Already getting our development approvals in place.
I want a Gas plant operating in 2024.
I like what Beach and Mitsui are doing with Woodside LNG.
Id like to power all our MIN plants with gas
I reckon I could do that for around $1/GJ in cost (ed. note: current wholesale is $6/GJ, so he expects to make 6 x what its costing him.LNG netback is $20-$30, so that’s…20-30x what its costing him…no wonder he likes the Beach/Mitsui duet!!)
Id like to turn magnetite into pellets…(ed note: yep good idea, Gina will like that too).
(my ad lib...Id like to turn base things into gold…like NWE…um hold on a minute bro that’s not completely yours…we want a slice of the action too).
Journo/Analyst
How big a gas plant were you looking at?
CE: Need to get a bit more information on it…but were looking at a 250 TJ/day plant from Day 1…
CFO : were looking at a modular design so we can add to it in future…scale up…because we know there is a LOT MORE GAS THERE (CFO emphasis)…
CFO : It wasn’t the most prospective hole we dug first (big smile on face).
Then they started talking about Wagina…but is was the Lithium, not the oil…But in a few months after NED-1, it may also rate a mention....
Now in case you missed it...the range of possibilities for Lockyer Deep Gas Field...obtained by extrapolating the numbers obtained by the JV during the drill, flow test and recent seismic mapping. These numbers are an extrapolation of data from Lockyer Deep 1 and are possible ranges of GAS IN PLACE for the 20m interval of Kingia Reservoir only, 62084407 ...
ADD 6,000 BBL condensate/BCF 60458294 (i said 3 previously, my bad) 56254934 There is another 14 m of gas in lower permeability Kingia sandstone that needs assessment. It may offer recharge to the main producing horizon during long term production. There is also the High Cliff, which is low permeability here, but may offer better permeabilty elsewhere in the Lockyer structure. There is a 66m gross oil column in the Wagina/Dongara. Low permeability here...but who knows elsewhere in the structure. So you can see maybe why both Chris and the CFO were being quite honest and candid with their views and had smiles from ear to ear? ...maybe because they have seen numbers like these? Which is not to be sneezed at. But if you look at what this means in proportion to market cap...you have NWE at 200M with 500M MC and MIN with 800M at 17,800M MC... The best bit for NWE shareholders…we already have our ticket for the train…we have the money for the development drilling...the 4 drills and the 3D seismic...no need to jump off now. No we don’t need your money thanks Chris, we have our own. Please get on with the drilling, and maybe if you guys are that good an operator, we should be nearing completion of Lockyer 2 by now.
