Take a look at the facts - SN said way more about JAWS than desorption. This from Taylor Collison Gas Day 5 April 2018 presentation by SN "...access to over 11TCF of contiguous deep coal resource...". Look at the very very small print at the bottom. That's the reality - put into English the 4point text says 11TCf of anything is wishful thinking. Bu it is very small print indeed. The 11tcf is what you are supposed to see.
The WE 1.2tcf announcement was about WE2 only and about as accurate as the 11tcf at JAWS. Announcement of 11 Nov 2019:
Haber - don't make me laugh, it's too painful. It's not doable. For a start the costs would be over $4bn whatever SN may have said, assuming he could build as efficiently as Perdaman. Without SE gas to use in the plant he has no competitive advantage and there isn't enough gas nearby that he could buy to allow him to meet the production levels he suggested. He would need over 600pj in the first 10 years by his own numbers. No-one is going to finance that and let Strike build and operate. No-one. What would Strike shareholders get out of it anyway? A tiny carry maybe for the $5-6m Strike had actually spent on Haber until the Board kicked it into the long long grass? There's no more than that spent in the 5Bs and nothing capitalised or written down/off on the balance sheet for Haber.
Geothermal is another cause of hysterical laughter. It's not do-able especially in the middle of prolific gas fields. There is barely enough heat at 5km depth to justify the costs of drilling. What will Min Res or Mitsui for example make of Strike drilling loads of 5000m+ depth wells below the GWC in their fields? Decades of litigation. No rigs capable of drilling below 5000m anyway in the basin.. Geothermal reservoirs actually do deplete so you need plans and investment to keep the power coming or no-one will buy it. Who is going to buy it anyway? A few farmers? Transmission infrastructure to Perth would be impossibly costly and fraught with access and way leave negotiations over many years. Pipe dream hence the total silence in recent presentations
Why is any this important? Well, if there is one lesson we all ought to learn it is not to accept as gospel a word spoken by SN without independent verification and no lurking very small print caveats.
No doubt I will get heaps of abuse from the fan club unaccompanied by any facts to support their arguments, as that is the way of things here. As my favourite source of quotes said, if you have a weak argument, talk loudly. (Winston Churchill) - for loudly here, substitute use ill informed sarcasm and cheap insult. That won't alter the uncomfortable facts though.
I wonder why Andrew Seaton sold $283,264 worth of shares in a closed period. He is an NED on 4 boards and MD and CEO of Australian Naval Infrastructure Pty Ltd so is he likely to be in financial problems? I think we need to be told a bit more than that Poynton +1 approved it.
STX Price at posting:
23.0¢ Sentiment: Sell Disclosure: Held
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