Refresher,Two major difference with NXS and Longtom:1) Gas is...

Refresher,

Two major difference with NXS and Longtom:

1) Gas is only a secondary objective for Madura. Lomgtom wouldn't have been drilled on the odds of an oil find. Commercial gas was essential (and still speculative).

2) Nevertheless, Madura is onshore and therefore even a small gas find would be commercial (and if not enough to support a pipeline, local power gen).

As well as being onshore, construction costs are relatively low in Indonesia vs Victoria (and no show stopper Vic unions).

The gas price is going to be a moving target in Indonesia, but certainly strongly upward in East Java. Remember in Indonesia a lot of diesel and kero has been used for power gen, cooking etc due to rediculous subsidies which were largely removed in Oct (doubling fuel prices overnight). When gas is competing with diesel...great for the price.

Agree with Graham58 about PSC risks in Indo, hence despite the excellent prospects some farmdown at least prior to any field development investment would be comforting (and I trust Mike Scott & the board will make an appropriate decision at the appropriate time).

Entropylord