In the stock brokers Blue Ocean it states that 12MMscfgd is expected from Vali, which is 4.64PJ per year and over 4.5 years that is equivalent to 20PJ, so if production exceeds 16PJ is that to be excluded from the contract?, I would assume so, as such that would not be all the gas produced from Vali. The report also states: "Gas sales in the initial years are expected to be dominantly delivered into the AGL gas contract, with MEL retaining the ability to sell gas into either the spot market", this indicates to me that they will be able to sell some gas outside the AGL contract. In the Blue Ocean report they also state: "we estimate an annual cash generation of $5-10m to MEL for the initial years of the project" and "Odin production will enhance this cash generation", we will have to wait and see in the quarterlies, if MEL can get annual net cash generation of $5-10m that would be good achievement.
MEL Price at posting:
2.1¢ Sentiment: Buy Disclosure: Held
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