afawcett.
1. When ROC2 flowed, it was the time of low oil prices and industry in general was pulling back from investments.
2. ROC2 (although flowed really well) only brought us to the break-even point, so it was iffy, if the project, from Quadrant's perspective, would go ahead or whether it would become a stranded asset.
3. A lot has changed since - primarily, the price of oil has recovered significantly; there is an expected shortage of gas in both Aust and around the world.
4. PS2 hit gas and condensate - although the measurement was inconclusive at the time.
5. PS3, the follow up to PS2 will push this discovery into the economical territory.
6. The world (especially China) is moving away from dirty coal to clean gas.
7. The maritime industry is moving away from dirty oil with high sulfur content to oil with low sulfur content - note, our condensate have low sulfur content (less 2% from memory - ROC2).
8. Industries as well as larger Oil and Gas players will be interested; as seen by the Takeover activities this year alone.
9. Due to the lack of investments in the previous 3 years, and with resources depleting rapidly - the industry now is trying to catch up; refer to the number of projects WPL are rolling out within the next few years.
10. The Middle East has become more dangerous with sanctions against Iran and threats of military actions against Qatar. On top of that, the Venezuelan oil industry is breaking down.
11. This means our Asset (IMHO) has become a "strategic asset" as we are located right between Browse and the Karratha gas plant - giving us a seat at the table to negotiate better tolling with the Big Players in the industry, or become a primary target for Takeover. and lastly,
12. As a company, we are very different to what we were a few years ago. With more and more drilling results, we are understanding better the "Barret" and "Caley" sands and the structures within the Bedout sub-basin. Moreover, our management team have judiciously picked up a few excellent assets like Buffalo - A $500M (approx NPV) asset, for next to Nothing.
These are the positives for our company moving forward.
Of course, the counter points are; macro-economic factors like OPEC, US Shale, Trade War and the POTUS and the North Korean leader starting a Nuclear War.
For me, given the T/O of this year alone - AWE, STO, SEH and (possibly) Quadrant, we are likely to see a move on CVN - especially if our results from PS3 comes through - refer to Waitsia results from AWE.
Dorado and Buffalo will be icing on the cake.
AIMHO
As Always, DYOR.
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