Ann: Trading Halt, page-39

OG

in my experience, not all the the expected revenue will go to accounting for AGL’s prepayment.

for example, let’s say that the gas sale price is $10/GJ. Opex is $2 per GJ and the process tariff is also $2. In addition, AGL gets $15m repaid via (for simplicity) a 15PJ contract.

therefore The JV gets $10 less opex less the tariff less the repayment which equals $5 per GJ in cashflow. After the AGL prepayment is repaid, the price then goes up to $6 per GJ. The same for all spot sales where the AGL repayment isn’t made.

I should add that these are not estimates, just a simplistic view to explain the workings, as I understand them.

in terms of timing, my experience has payments for December gas deliveries being paid at the end of January, I.e. monthly invoices paid on 30 days terms.

I hope that clarifies the position.

cheers, AL