Anyone who has been following QGC closely would already know everything Alan Kohler has to say in that article. Besides which, even if investors historically haven't been willing to value 3P, BG was prepared to sign up for a deal with QGC based on future reserves that were way, WAY beyond what QGC had even in 3P at the time.
This statement is particularly funny:
"This morning’s announcement from Queensland Gas that it has more than doubled its 3P resources (proven, probable and possible) and increased 2P (proven and probable) by 80 per cent is purely a function of drilling."
AHEM.
What is he saying here? All you have to is stick a hole in the ground, and hey presto, your 2P goes up? Is this guy pumping the stock? What's hilarious is it genuinely sounds like he is downplaying QGC's announcement, yet with this throwaway line he gives investors every reason to jump out and buy CSM stocks, QGC in particular.
The best point he makes is that 4 LNG plants simply won't and can't be built at Gladstone. (Is a takeover of SHG by BG or QGC in the pipeline?) The next question is who wins and who loses if some of these plants don't get built? It is highly likely that facilities to produce very large volumes of LNG from Gladstone WILL be built, irrespective of who owns them. If QGC is sitting there with vast 2P resources, isn't it likely that somehow those resources will be contracted out as LNG? If not the contracted price will be very significantly higher than it is now anyway.
One final point. Anyone who has been a shareholder for the last 3 years knows that QGC has an impeccable record of not only delivering, but over delivering on its promises and potential...
QGC
queensland gas company limited
