I take my guidance on this issue from EWC’s 9 February, 2007 ‘Company Overview’. At that time the ‘competent person’s’ report indicated the possibility of up to 7.5TCF of gas resources being located in the Sengkang PSC area.
EWC’s 2014 AR reference to the draft GC report contains data comparable to part only of the 2007 ‘Company Overview’ report. In short, there are a number of further significant (deep) reef buildups with very significant gas resources for which the draft GC report does not provide any data.
In addition I also believe that the current board members would not agree for the 2014 AR to contain references (i.e. If the development of gas resources justifies (which is not known at the present time), we envisage expanding the capacity of the Sengkang LNG Project up to 5 MTPA through a phased development of additional 0.5 MTPA modular LNG trains in the long term (p.31)) which are knowingly incorrect. In other words, whilst only further drilling in the future will demonstrate the extent to which 5mtpa lng can ever be produced from the Sengkang PSC area, it seems reasonable to believe that such resources may be able to be commercially exploited.
EWC Price at posting:
36.0¢ Sentiment: Buy Disclosure: Held
