It's very hard to estimate the revenue and cost without knowing...

  1. 2,849 Posts.
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    It's very hard to estimate the revenue and cost without knowing the key variables (contract gas price, Santos processing charge and the exact gas flow rates). However, they should get some good cash flow once all the three Vali wells are connected and start flowing. Once Odin is connected, they should be making good profit.

    Initially, they will struggle with only one Vali well. The reason is that they will still have to pay the gas processing fees, and also they will be giving away a certain amount of gas to cover the pre-payment the joint venture received a while ago ($15 million pre-payment to be recollected over the life of the contract).

    If they can defer the payments to Santos and collect the cash quickly from AGL, it would be great smile.png
 
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