bow dj interview - relevant to wcl, page-4

goodaye Shareinspector,
it's all about reserves.
i think the figures i quoted of 1,000pj 3P to be proved up in "near term" - i think were WCL share - cannot remember.

But lets assume it is.
A 1.5mtpa LNG plant needs I think something like 1500pj 2P of reserves for about a 12-15 yr contract.

If WCL proves up that sort of gas over the next few years, which it probably will, then it will be a juicy target for a big player.

Whilst the permits are a J/V, the takeoff of gas is not part of the JV.
WCL can deal with its share of the gas.
So a party other than BG would be interested in WCL share of the gas. that was the whole reason WCL announced that it had formalised the JV agreement with BG.

Prior to the AOE and BG attempts on Pure, I thought that two competitors would not be interested in sharing gas production from the same permits - but that situation proved wrong - AOE & BG would have been happy to take their own share of gas, were they forced to co-own Pure.

There is nothing to stop us from having a JV of a JV.

I remember talking to WCL some time back, and their view was that they thought that Arrow (not BG) would be the most interested party in acquiring WCL interest in the permits.

cheers