keep or sell???, page-8

"FUNDAMENTALS"??

Price of gas?? "Value" of producing gas properties??

Origin Energy Ltd managing director and chief executive officer Grant King has warned that strong early demand for coal seam gas (CSG) in Queensland may place pressure on the multi-billion-dollar projects currently under construction at Gladstone, according to The Australian.

According to the newspaper, Mr King said a supply squeeze was possible as the industry struggles to drill enough onshore wells needed to meet the massive demand.

He said that while the had been some early concerns in the industry that the region would be awash with supply, there was now the possibility that production could fall short.

"I think we will enter another paradigm where, in aggregate, not only will the industry be able to manage the ramp-up but probably it's going to be a bit challenged to deliver the aggregate resource," Mr King told
The Australian.

The comments come after Origin reiterated its full year guidance following a swing to a big profit in the first half of the year.

The energy group posted a net profit of $794 million in the six months to December 31, an improvement on the $136 million loss from last year.











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