re: Ann: Chairman's Address to Shareholde... I was at the...

re: Ann: Chairman's Address to Shareholde... I was at the meeting today: A few things to note:

1. Burly security guard at footy club door. His job to refuse entry to stirrers. As it was he only had to eat the delicious CWA prepared sandwiches because not a protester was to be seen,

2. Very impressive line up at the front table. The good professor and the ex foreign minister.

3. Loved the venue. Kills Collins St. Reckon it should be there every year

4. Meeting started with a short video of CEO Annells discussing Lakes contribution to the West Gippsland community. Very impressive and showing an important aspect of the companies activities with footy, cricket and cycling.

5. Most motions passed without a murmur. The last motion was ditched without explanation.

6. Rob's report:
a) Subdued but still fighting. Clearly disappointed by Govt's decision to extend fraccing ban to 2015. But undaunted, has a program to recover hydrocarbons in two places: Otway and Wombat without fraccing.

b) He did a great job explaining the geology and the fraccing needs. I have a PhD and understood everything he said. Not sure the Greenies would though. It's a complicated story that needs time to digest and intellect to understand. I am convinced that what Lakes are planning is safer than catching a bus.

c) Think that all present were frustrated by the ban which will cost Victorians zillions just to save one politician from loosing his seat. God our system sucks sometimes.

d) Quietly aggressive about the MOU with Sinopec. Planning a chemical plant and want gas. Should be here in a couple of weeks to do due diligence. Rob said he should show them some footy, but he forgot that it is cricket season and I reckon they might fall asleep watching that

e) I was amused to learn that gas has been bubbling up through the precious aquifers for centuries. That a whole new mud island has recently formed in the Gippsland lakes by the force of rising gas and that some pub owner in Gippsland used to entertain his drinkers by setting fire to his bar tap. So gas in aquifers is normal. But of course Lakes wells are protected by three layers of steel and two layers of concrete as they penetrate the aquifer and then dive about 1.5 kms below the surface to obtain the gas. There is no way our gas will get into the aquifers.
Esso get there gas in Bass Strait from the aquifer but no one seems worried about that!

f) Rob has been approached by several companies wanting to secure long term gas contracts

g) It is unlikely that we will be able to feed our gas into the Esso pipeline..........no reason given. But there is a second pipeline which sends gas to Tasmania that is underutilised.

h) We are examining potential leases in Western NSW and in the Murray Darling basin (I think). Sounds interesting. Watch this space.

i) If the gas field gets going well heads will be very unobtrusive with pads every 600 acres or so and not in close proximity. They will just look like taps surrounded by a fence and occupy about 16 sq metres. Very compatible with normal farming and not an eyesore at all.

My conclusion is a feeling of quiet confidence. Don't think anyone will be fraccing in Victoria until well after the next election. Napthine has been vague about his plans for the future (does he have any?) and the Labour party are as one with the Liberals on this issue saying that if they win the next election they will have a public enquiry into fraccing.
Despite this, Lakes is getting on with the job. The horizontal well in Wombat sounds really interesting and the Otway pipe will keep the SP ticking over. Expect some significant spikes in SP over the next 6 months IMHO.
Amen