Ann: Noosa Mining Conference Presentation, page-4

Here's my take and questions with the numbers info provided.

9TJ a day is small gas market , this is 3.285PJ/year equivalent to a single large C&I consumer in larger states.
Huge heroic assumptions here but if we assume some of the market is unavailable, too small, won't change, already on long term contracts, etc, say 3 TJ/day not available and we successfully contract 50% of remainder, that's about 1PJ. Tom mentioned the benchmark price is $20/GJ equivalent so discount that to make it attaractive to $17.50, assume production & distribution costs are (wild guess) $10/GJ, then this is $7.50 x 1PJ = $7M/year profit?

1.2M barrels diesel is 160k Tonnes of gas (0.134) or a further 7PJ or gas(43.38). I don't have any benchmarks here but would assume that the opportunity & penetration will be less due to reluctance/inertia and capital costs to convert. Let's say less penetration and margin therefore so maybe a further 1PJ at $5/GJ margin would be another $5M.

I keep asking about the market make up and don't get any feedback but posted recently the make up of small generators in Kimberly, a few of who probbaly represent the largest users and opportunity to contract with??

The largest users I've been able to find look to have some fixed costs & pipelines associated with their fuel supplies so that would be a further hurdle but I don't think included in these numbers as LNG.

"Broome Power Station was commissioned as part of the West Kimberley Power Project (WKPP), which includes Derby, Halls Creek, Fitzroy Crossing and Looma Power Stations. The power station also acts as a hub for the Broome liquefied natural gas storage facility and the 12.2km Gas PL72 Pipeline, and the five power stations EDL operates for remote Aboriginal communities in the region.
EDL’s West Kimberley Power Project includes a 61MW power station capacity that supplies remote communities totalling 38,000 people, a 200 tonne (10 TJ) per day LNG plant in Karratha, LNG storage, a 3.2km pipeline and an LNG road transport fleet."

I don't know if the numbers include transport segment demand and any opportunity there but note that fixed costs to convert from diesel to natural gas for a truck are about $15k so might need some policy or funding to encourage fuel switching or a deeper fuel discount.

I can see that this is a good & lucrative oportunity but not large enough for any of the majors to be interested if this is extent of scope.
Funding and costs critical as well as markets/contracts. Can this team deliver on all these fronts?

Feel free to respond with character assasination, derogatory comments & psychology analysis and avoid the details.