The production from a gas field is not just constant and then stops . It rises at first as production wells are drilled and then declines at a rate that depends on the characteristics of the reservoir . I think a plain reading of their announcements indicates that all the gas for the first 4 years is under contract but I do hope that I am wrong .
Unfortunately prices go down as well as go up . All the forward assumptions are that gas prices will go up but contracted prices may not b.e lower than spot prices if a black swan event was to occur . Gas prices were not too flash in the darkest days of the Pandemic
MEL Price at posting:
2.1¢ Sentiment: Hold Disclosure: Held
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