Bigdream. Although I don't believe that you reckon that Shantou SinoEnergy is a "shell company" or a "$1 dollar company", surely, it still troubles me that that impression could be made on people who are reading this forum who do not know the company.
The GSA, while extremely valuable for the future, is not IMO the main game at this moment, exploration is and proving up the 4 wells in the tenement via the stimulation program is the company's 100% focus.
With the most recent GSA signed between Santos GLNG and WestSide at $9.28Gj there is enormous potential for contracts if one has gas. This is a feed gas contract for the LNG plants in Gladstone at above $9.00Gj!!!!
Not a bad price and it would seem that one could sign up more contracts today at this price or around this price!
The FOB price for LNG in the March 2014 quarter out of Australia was $13.64GJ (up 29.7% since 2013) so if you take off transport and liquefaction then the $9.28 price is excellent for sales gas.
By focusing on Shantou Sino Energy we would be missing the real game, proving up our gas.
This will grow shareholder value in the near term not the contract.
ICN Price at posting:
14.5¢ Sentiment: Buy Disclosure: Held
(20min delay)