March-19 quarterly projections, page-42

I've listened to the webinar and note Leon talked about a number of the points above (sorry, will stop replying to this thread after this post). I listened while at work today so hopefully didn't misunderstand anything said.

1. Update on gas marketing for 2020 and beyond. This topic is obviously commercially sensitive so can't expect too much until it's completed.
[Webinar: Reaffirmed pricing indications are still strong and the expectation is for relative pricing to increase. No indication was given on quantum of pricing increase or the term sought. Leon noted that multiple parties are interested and would like to have an agreement completed by Q3 - CTP wouldn't like to be in Q4 with uncontracted gas]

2. PV13 tie in update. What remedies are being planned (incl. timing and capex) due to PV1 restrictions.
[Webinar: Tie in to happen this month (has been slow due to regulatory approval) and cautiously on reduced choke to maximise recoverable reserves. Estimated capex to complete PV13 was referenced in his GAP question, where he disclosed that the remaining GAP costs were c$6m and this was primarily associated with PV13 tie in. No comments on remedies other than the self sustaining capex of c$10m per year to maintain production levels (on average)].

3. Update on financing.
[Webinar: Financing well advanced, narrowed down to 4 banks. Will select and work with 1 bank to move forward into full due diligence shortly].

4. Pipeline tariffs are significantly higher than originally targeted (and communicated). I don't feel like this was ever explained.... I don't have a great understanding of how these work, but can we expect tariffs to decrease as pipeline operators recoup their capital investment?

[Webinar: Pipeline tariffs weren't discussed directly, but he did note on the back of a question that with compression, gas producers will only pay for the return on marginal capex which will reduce the cost of marginal gas hissing down the pipe. This was clearly explained to me but I guess we don't know how far away we will be to reaping those benefits, if ever? He talked about Moomba pipeline would be the dream, but obviously a pipe dream at the moment (mind the pun - my words). Would need some serious gas to make it work].

5. Would management consider divestment of Surprise oil field? I have heard that the costs of maintaining the the production licence are significant. Let's whip it off to a junior if we can get a couple of million for it?
[Webinar: No mention of divestment, but did note that significant cost to bring back online.]

6. What GAP costs are remaining?
[Webinar: c$6m, primarily related to the PV13 tie-in.]

7. Are there any penalties associated with the gas imbalance of 4.5 PJ or is this effectively free financing?
[Webinar: Near the beginning of the presentation, Leon answered this well saying there is no penalties or interest with this and would probably be paid back at the end production reserves. He said he was surprised that MQ didn't manage to market their gas, so they were able to take advantage of it to meet their firm commitments. Near the end of the presentation, a question was asked if the production imbalance was held on balance sheet - he said yes, and implied it was intertwined with the MQ presale gas? I need to double check this but makes sense given the volume we're talking about].

There were a number of other good points raised, such as self-sustaining capex (c$10m per year), further Mereenie production rate increases, normalised cashflow numbers, expected debt service levels on new financing, targeted margin increases through cost side efficiencies etc. I'll do a separate post on those....on the webinar thread later.

Cheers.