Hi PakkhamI'm no tycoon but I have some knowledge of gas. I've...

Hi Pakkham

I'm no tycoon but I have some knowledge of gas. I've spent a bit of effort researching coal bed methane gas companies in Queensland. I'm much more of a fundamentals investor as I can't play the short term trends.

By talking to experts in the field, I have learned that the assets owned by Galilee require a lot of capital and a long time before knowing if you have diamonds or if you simply have dust.

For Glenaras, you could be looking for $ 40- $ 100 million more capital and 1-3 more years just to find out * if * that there are 500 PJs of 2P reserves. It is very, very remote, which means it will be much more expensive to develop than other gas assets.

It also means that it will have to be very large to justify the 400-500 km of gas export infrastructure that is needed. It's easy to see how it could take $ 2-3 billion in capital and take 3-5 years to build.

That is assuming there is a market. Oil and gas prices are at record lows. Gas prices were very low even before Coronavirus.

Nobody is investing in big projects now.

Therefore, nobody is going to buy the Glenaras project or buy gas from Glenaras until they are convinced that all the expenditure above (firstly the $40-$100 million and secondly the $2-3 billion).

That's my real world fundamentals analysis!