defensive takeover strategies, page-31

tommytwo

Yes how about it ESG ... we need to hear something soon! We were told last year in April that we would see a GSA with ERM by years's end and likewise when we signed with Marubeni in mid 2010 an offtake agreement was talked about .. certainly by early 2011.

What big announcement are you expecting TT? My reading (of the tea leaves?) is that the feasibility study looking at full-field development is due "mid-year" ... presentations have said that by mid-year "a single go-forward option for upstream (gas field) development" will be determined. Then FEED would start on this component of the project. FEED is underway already from February for LNGN and it remains possible that we may get an update. But neither of these will be 'killer" announcements.

What then can be expected in addition to the expected reserves uipgrade? In my books it would have to be a off-take agreement (there are 3 possibilities as I said in a post yesterday) .. most likley an MOU at this stage (pending approvals and FID). What else could we get? A sell-down of LNGN project equity? Its a bit early for that IMHO .. ESG said that would happen "closer to FID".

Let's hope we get SOMETHING on the commercial side ahead of the reserves upgrade so that as Yaq has pointed out, the upgrade is able to be even bigger based on more market certainty.

H