Ann: Sino Gas - Funding for PSC Projects Imminent, page-4

re: Ann: Sino Gas - Funding for PSC Projects ... Rifici

Thanks mate for sharing your thoughts and explaining a few things for me (and perhaps for others as well). I agree with you that in the absence of any other option, that as shareholders, we are almost compelled to approve the deal if so required.

I for one am particularly interested in the terms of the deal (as you suggested); eg. the further $90 million to be used for development, or in other words, I am hoping for a clause that stipulates that until the $90 million has been used in its entirety for development of the SEH assets, that a takeover of SGE is not permissible. Whether such a clause is standard in these types of deals or is even possible, I would not know...

I am not keen on selling 51% either, however, as you rightly pointed out, 49% of a fully funded project is much better that 100% of a project with zero financing; an option that dilutes our holding even more, or as you also stated, a project that might not ever see the light of day at all...

I also agree with your thoughts re: the 'safe option'; I am a big fan of safe options...

As for the 25c target, I am confident we will see your target and multiples of it, as a shareholder I am of course excessively biased in that opinion...