icn - dyor - understanding shale & lng, page-29

How good is it too see rigorous, sensible discussion on this forum?
Maybe, Speculator, it just might have needed a "quick tongue" to get this forum fired up? Seems to have worked.
Maybe certain posts were included to "test" the perceptiveness of some poster who seemed to be expressing great knowledge? And he has delivered in spades. I speak of the Sunday post of mine and cmonaussie, of course. Somehow, I reckon that I have got all the 000s well and truly in my grey matter and have had so for a very long time.
But, too many were starting to relax, thinking that the game had been won and counting the dollars. VERY dangerous ploy when we are still in the third quarter!!!

Now, let's get back to my favourite way of trying to work these things out, yes, the KISS principle!!

Are we getting a bit overwhelmed with the obvious size of all of this and, consequently, looking for "big" solutions and losing sight of the bleeding obvious?

Now, these are the guts of the GSA from the ann on 29 March 2011.

Icon Energy is free to source feedstock gas from its own OR THIRD PARTY TENMENTS, subject to the gas and LNG meeting the international standard LNG specifications to be determined by accredited experts appointed by Icon Energy.
Icon Energy Managing Director, Ray James, said today’s achievement.......... sets a clear strategic driver for Icon Energy’s operational focus TO SECURE and DEVELOP gas reserves to meet its obligations under the contract.

The supply terms give Icon Energy flexibility to SUPPLEMENT its own resources with suitable contracted THIRD PARTY feedstock gas and which could serve to UNLOCK STRANDED GAS in Queensland and elsewhere.

“I envisage commencing discussions with identified AND PROSPECIVE CO_VENURERS in the next couple of months, with a view to building Icon Energy’s gas bank”, Mr James said.

Reserves CANNOT be certified unless a market exists for those reserves in accordance with international protocol.


Now, while we are all concluding that there is no way that ICN and/or Beach can develop 855 and/or 218 to enable it to develop and supply the equivalent of 100Bscf per annum and have written off Icon as a future player, have we ignored the distinct possibility that much of that gas HAS ALREADY BEEN FOUND in those locked and stranded gas in Queensland and elsewhere, which, to date has not had a market and could not be certified??

And that ICN does NOT have to find all of that gas itself??

Sure, it might belong to other companies, but, wouldn't they be the "identified and prospective joint venturers" that Ray James is talking about?
He is obviously prepared to SHARE the profits of Icon's GSA, as he PATENTLY acknowledges that he cannot deliver it on his own!!!

And wasn't it coincidental that Beach commenced the legal action for that j/v in 855 on 25 March 2011, just 4 days before ICN's GSA announcement? They, clearly knew about the GSA and definitely wanted a piece of the action.

So, before we write off Icon as a future player, to do that might be a huge mistake, as it completely ignores the competence and skill of that bloke who many think has been overpaid for too long!!
He knows that he is holding at least 2 of the aces in the pack, 40% of 855 and the 20 year GSA, and that is a great negotiating position to be in when the "hard ball game" begins. In fact, he is in a far better position than Beach.

He knows all the big players in the business and knows where most of that "unlocked", previously un-commercial, gas is that previously could not have been certified for not having a market. ICN's GSA provides that "market"!!

And doesn't it seem patently obvious that 218 and 855 "should" be developed simultaneously and everyone enjoying the fruits of the GSA?

I can only repeat that this is the best win/win position that any shareholder of a specky company could hope to be in.
Am looking forward with great interest to further developments.