wcl t/o metrics, page-19

Goodaye Dozen, I agree with what you are saying.
We have never been told what the costs will be to get WCL to the point of producing 65tj/d.
I guess we might be able to have a guess by figuring out the costs of producing our current 13tj/d, then multiplying it by 5 ?

What I recall in one JB's presentations is that costs of production was $1 - $2 /gj.

So with the price of gas to rise to say $8-$10gj by 2015, that still leaves a big margin for WCL.

WCL have said that part of the R/I funds would be used to fund the study into the full field development of Meridian. If it does cost say $100m to develop the field to supply that 65tj/ day, then IF we have a GSA in place, and we would, then I am sure WCL would be able to fund it.

it would not be all funded by CR. And we should be comfortable with that assumption, simply because the Board would not want to be diluted - same as us.

- We could get project finance based on the GSA.
- According to MPO, it is common practice in USA and Canada to obtain debt funding based only on reserves position. We were told at that last Gas Conf in Sydney that those funders want to expand into Aust.
- we could get a new J/V partner to buy into Meridian, and those funds could be used to fund our share of dev't. Thats pretty common.
- we could leaseback some of our infrastructure
- we could get funding by way of a Forward Sales Agreement (which is common- EGO just did it with their Alcoa contract).

it could be a combination of all of those. I am sure these are some of the "options" that were referred to in the WCL announcements.

But for sure, this funding of the full field development will be a big part of the considerations to be made by the Board when they have to consider the HUGE number of lucrative Offers we will get prior to the AGM !!

We won't be able to see the Chairman at the AGM, because his view will be blocked by the pile of Offer documents in front of him!

cheers