Hi Mitchdon,
I am not sure why the production cost is so high. Santos processes the gas and it's piped to AGLSince the production cost is more than the revenue, it also means it costs more than $8 per GJ to produce the gas. If the production cost includes fixed costs, then they can reduce the average cost with more gas.
It's a bit of a puzzle as we don't know the processing fee charged by Santos and the specific information about the AGL deal.
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