Valuation Scenario based on CEDAR FLNG analogue project Cedar...

Valuation Scenario based on CEDAR FLNG analogue project

Cedar LNG Kitimat FLNG project (https://www.cedarlng.com/about/)

• · 3 mT or 400 mmcfd ($3bn capex for FLNG facility owners)
• · Already has 50% gas supply contract @ 200 mmcfd.
• · Gas supplier gets (JKM – liquefaction tolling fee and shipping cost)
• · Indigenous majority ownership stake
• · Renewable electricity for plant (Net Zero) and ties into nearby pipeline supply
• · FID imminent

Scenario: 25 y gas supply gas to 2050 @ 400 mmcfd

Need to get to 3 .5 TCF from bigger RAF or adjacent fields. The 3D could have a surprise benefit:

• · could be DHI to show G/W or O/W contact
• · that would show how deep contact is and also how extensive accumulation is
• · means potential for very accurate resource statement and easy to locate appraisal wells

How’s that work? A mix of

• · Amplitude anomalies
• · Complex seismic trace attribute analysis
• · AI 3D interpretation looking for horizontal phenomena
• · AVO gas extent analysis
• · Key is anomaly that lines up with structural contour (contacts are flat)

Disclaimer: Speculative scenario - Not financial or investment advice - DYOR