They might not necessarily want it all contracted. The spot price for east coast gas has massive swings (in particular the winter months) and provided they have the ability to ramp up and down production rates built into their processing agreement then they may plan to base load the contracted gas and sell their own gas on market when commercially advantageous. I would imagine they are selling the contracted gas at $8-$10/GJ where as the spot price can be significantly higher under certain market conditions. As I sit here now, the Victorian wholesale gas price is $38/GJ so you can imagine why selling some parts of your gas to the open market can be a winner
VEN Price at posting:
8.9¢ Sentiment: Buy Disclosure: Held
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