re: gone elsewhere ...?-av I'm talking more about selling additional gas they find. From memory they have around 170PJ of 1P gas of which 110 is contracted. They have a heap more 2P and 3P reserves which they have to sell to someone. Anymore increase in reserves given this overhang is not going to be that exciting I figure.
The share price will creap upwards as the time to production gets closer and the risk premium goes down, but I can't see a big spike unless a new contract gets signed. The market is already valuing QGC at $150million and they haven't earnt a cent. So I think the market has come to somewhat of an agreement on appropriate risk-return for the time being.
I am sure they will release upgrade reserves...whether this produces more than a small spike remains to be seen. If they release some news on a new contract people like me, and I think there are a few judging from the posts (or the lack thereof) of people who were involved around the time of the SPP, will just jump straight back in.
All just speculation of course!
QGC
queensland gas company limited
