Dear Mr B, I read your post with interest and wonder why you...

Dear Mr B, I read your post with interest and wonder why you asked such questions if you had done some research into MPO's activities. It seems that either you hadnt or as suggested trying to raise doubt in peoples minds regarding MPOs quality assets. Not sure if you also asked similar questions about the china fields - who is going to buy it, how do you ship it etc.

I have done a little research and hope this explains a few things.

In relation to south africa its population is not only growing it is larger than Australia's. While the standard of living is lower, it is also growing as more of the black popoulation becomes developed. South Africa also has a significant industrial economy. In relation to demand for gas, the growing and increasing living standard of the population is creating an increasing demand for gas. SA is biulding a gas pipeline from mozambique to supply the gas shortage that SA has. also the gas price is much higher than australia.

In addition, there is a growing demand for compressed natural gas to run cars in SA. As the price of oil continues to rise, so will demand for internally sourced fuel. Not sure why Australia hasnt latched on.

The other factor regarding south africa is MPO has 100% of the fields which are close to pretoria and jo'burg with a pipeline close by one of the fields.

In relation to australia, this may sound silly but you cant sell any gas until you get certification. While there is the demand for the green gas, contracts cant be signed. So all this work and money being spent is to get 2P certification. once you get this you can get a contract.

As to the gladstone gas station, which one are you referring to the AOE/LNG project or the Santos one. Addition, do you understand that the Alumina plant is being expanded to make more congealed electricity. While no mention is made of MPO involvement in any of these, a prudent manager would try to offset the supply risk by having a number of suppliers providing gas, so if one has a problem, hopefully the others can temporarily increase production. the other factor is that the price of the sold product will move to international pricing which is several $ higher than at present. With the increasing demand from gas fired stations, any supply will be taken up. As to glouster, this is close to Newcastle and on to Sydney, but alas we only have 30%.

But for anything to happen, 2P certification is required. AOE, ESG, BUL, STO etc are all drilling to get certification.

As I have said in the past MPO is a year or so behind AOE and QGC. So it is a keeper.

But also ask management at the meeting.

But please do some research on any company you wish to invest. While it is easy to rely on others, you dont know their motives.