Simple really, STX are sitting on a shite load of conventional gas in the Perth Basin which has been producing oil & gas since 1971, so if my maths are correct that is 50 years of continuous production from various operators and there is lots of infrastructure such as pipelines, processing plants etc. The crazy thing is that there was minimal exploration dollars spent in a confirmed oil & gas region, maybe because it was 3 hours drive from Perth, just as we have seen with CHN's Julimar PGM discovery less than a hour out of Perth, the major SH in CHN is Tim Goyder also holding around 5% of STX. The upshot is that what I have been told is the Perth Basin will be supplying gas to the whole of Southern Australia and also pumping it back up the Dampier to Bunbury gas pipeline to the LNG trains in Karratha as it will be the cheapest gas in Aus to extract, and they are now talking about a urea processing plant that would have revenues of $540m - $ 700m per year for 30 years for a $2.3b capex. I suggest to keep a eye on some of the juniors that have ground holdings in the Perth Basin, I know I am.
Cheers BK14
EXR Price at posting:
38.0¢ Sentiment: Buy Disclosure: Held
