so where are we at?, page-15

Hi Iam

I agree focus is now on Heron, however with Conoco and Santos both having fields near TS up for sale, and both having issues closing the deals, I hope MEO is onto it. I expect MEO to be doing whatever they can to either scuttle/delay both deals or else get involved with the purchasing parties. It's just business and MEO need to be aggressive or else they'll (STO and CNC) continually shut the door on them.

I believe Santos and Conoco will not sell to MEO due to the impact Tassie Shoals getting up will have on them. They have both invested to much cash in their Darwin plant to sing TS praises.

Conoco owns the LNG plant in Darwin and insists any purchaser of it's field processes gas there. As you pointed out in a previous post, I am also surprised the Gov didn't prohibit this behaviour.

Santos is a minor partner in the Darwin LNG plant and no doubt also wants their Evans shoal gas processed in Darwin. They don't care about Magellan building a Methanol plant in Darwin because Methanol is not their core business and Magellan's LNG will likely go through the existing plant anyway. In fact I bet that's part of the deal and why STO is eager to grant extensions to MGN.

I think for TS to come off MEO needs to act quickly by

a) Get Heron appraised and if OK build TSM/LNG plants quickly. If the plant is there it is much harder for others not to use it.

b) Get a foot in the door of another nearby field, either directly or indirectly.

Even with $100m in the bank it's not enough to fund either scenario so other backers will need to be wooed, and I really hope they have got them wooed already. Maybe Clive will have another bite?