afr article

Thought I would start a new thread as the old one was getting off track a little.

In the AFR today, p25, the whole page was devoted to Woodside. There were two articles, one talking about how earnings next year will be increasing due to the renegotiation of LNG prices for Pluto. It is estimated that prices will rise from $US7 to $9 per MBTU to about $12 at $100 boe. This is expected to translate into about $780m in additional revenue for cal 14. So, although WPL does not have nay volume growth for next year, it appears to have some price growth. For FY15, with Vincent well coming on stream, that will provide some volume growth. So to say that WPL is ex growth, is IMO, a little premature.

The other article was talking about Browse. Browse was first discovered 40 years ago. PC revealed this week that "using FLNG could cut costs over the life of field development by between 35% and 50%". That is not to be ignored!!! At about $13.5B for a vessel, the 3 vessel's are close to $40B. One analyst has assessed that FLNG generates a rate of return of 17.1% for WPL at $90boe. This compares to around 12% for JPP.

I can see the WPL growth plan coming together nicely (even w/o Leviathan). I am happy to hold.

HT1