a pitch at MPOs reserves would be an interesting take on things for Westside. But it would be a scrip based move. Insufficient cash exists for such a deal I think, even after a cap raising.
I will say it again, I think Westsides focus is on being a reliable supplier of gas. There is substantial opportunity in that market and we are very likely to be exposed to some much higher gas prices; higher than the ones I have played with anyways.
If AGL is able to squeeze a $6GJ figure now in 2011, 3-4 years before export. The market forces will conspire against the buyers and the squeeze will benefit those players who have risked their capital to make a buck.
Patience is required for Westside. If we catch early wave, so be it. I dont think its in Westsides interest to update the market at every minute on flow rates either.
Cheers,
SF
WCL Price at posting:
23.0¢ Sentiment: Buy Disclosure: Held
