@NCMAO3124 an@MrMozambiqueFirst, thanks for reaching out to PWN...

@NCMAO3124 an@MrMozambique

First, thanks for reaching out to PWN always.

Just to add to PWN's comments and to provide some context, the US gas industry landscape is quite unlike Queensland.

While the market looks very attractive, US tight gas production (mainly shale and, some, cbm) last year was 31.6 TCF (of total US production of 36.5 TCF) versus Australia's CSG production of 1.5 TCF (of total gas production of 5.6 TCF), the market lacks suitable opportunities because quite simpy:

a. The regulatory environments are dissimlar. Australian CSG production is almost 100% located in Queensland (AGL has a small NSW footprint) which has some of the most stringent environment regulations governing oil and gas in the world. This highly regulated environment enforces a number of limitations on use and disposal not seen anywhere else.

The US shale gas industry reuses semi-treated formation water flowed to surface in well stimulations and enhanced oil recovery campaigns. Treated water is recycled into agriculture and industry usage.

The waste brines produced from treated formation water are disposed of by way of high pressure, deep salt disposal wells. There are circa 36,000 of these class II wells currently used for deep disposal of concentrated brines into suitable, isolated, formations protected from soil and water contamination. QLD does does not allow deep well brine/salt disposal.

b. President Biden signed Executive Order 14005 in his first week in office, which has enforced a "Made in America" industrial strategy. PWN, as a foreign company, is at a significant disadvantage to locally developed technology. There are a number of local ssr and waste-to-value pilot plants and research projects in operation, although none appear to be cost-effective (to the alternative disposal method) for the US market.

c. Gas, with its associated formation water, production,and midstream infrastructure is highly segmented across more than a dozen different States and a very large number of operators.
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I believe the PWN strategy can not be faulted in focusing on the local market.

a. Queensland has set an extremely high environmental regulatory bar, and along with tier -1 operators (dominated by the 3 consortiums) representing the most environmentally minded companies in Australia, provides a very healthy environment for PWNs tailored solutiions not just as an "end of pipe" service provider.

b. Strong federal and state government support, reflected by ARC grants, ATO R&D rebates, university partnerships and social media interactions.

c. PWN provides needed local content to an industry, in Australia, dominated by foreign players IBC (or more correctly the integrated iBC/aMES platform) is a locally developed solution for a local issue. Looks good on the ESG scorecards of our potential clients.

d. It is our own backyard. Logistics, business licenses, agents, foreign exchange risk, profit repatriation, cultural differences, operation & technical support and ip dilution are all close to non-issues, compared to the international market.

e. Years of carried forward tax losses to offset the, potentially, coming mega-profits.

g. Focus, we have limited resources and little room for distractions. Maintain early mover advantage in the QLD CSG market.