Its worth cutting through the hype and emotions and look at the numbers. The last quarterly report TEG reported that CH was doing 508 bbl/d average. Lets use 500 bbls/d and an AUD100/bbl for a quarter or 90 days. The revenue is $4.5 million. The Qtr report state roughly that TEG spend around $5 mill/qtr keeping CH going anf the doors of the office open.
You then need to add exploration spend like the seismic in L7 and all the costs that go to that like all the consultants processing the seismic and doing the interpetation. Any down hole pump failure adds to the pain plus any other high cost maintenance.
Its not long to you get to the conclusion that TEG is loosing money every day it keeps CH going. Talk of boat loads of oil sales is just hype to mask the truth - CH looses money. Problem is they cannot afford to shut it in and be liable for the abandonment costs. What do you do?
Pretty simple: Keep the lie going whilst you try and get concessions from the regulator by calling it a carbon capture and storage project.
Selling State Gas is just the reality of a business failing. You'll probably find that the Regulator is insisting that TEG domonstrate they have funding for abandonment. As shareholders you'll never know the real truth. BUT what you can see is just how much money and lost opportunity you all have been exposed to by owning TEG shares.
Sure you can keep posting on HC how undervalued TEG is but the truth is that holding TEG and waiting YEARS for a turnaround is just plain dumb. (be honest - how long have you kept money in this stock)
TEG Price at posting:
1.5¢ Sentiment: None Disclosure: Not Held
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