origin purchase shows value of wcl

The Origin release shows the importance of:
- proximity of infrastructure (power lines & pipelines), (ie WCL)
- proximity to market (WCL)
- demand for gas for domestic purposes (ie WCL)
- value of uncontracted gas (ie WCL)
- gas requirement for base load power stations

This is why WCL should be attractive to the big players, once it has confirmed it reserves and confirmed the potential of its acreage. First Reserves are due end next month ie June 09
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Origin ASX Release Today:
Origin confirms Pangaea CSG acquisition adding greater
flexibility to Origin’s domestic gas supply portfolio

Extract:
The permit is located near gas transmission infrastructure that services existing
markets and is also close to Origin’s Darling Downs power station and a number of
other gas fired power stations.
“The transaction typifies Origin’s strategy of securing gas resources that are located
near infrastructure, can be developed at competitive prices and are close to market.
It is this strategy that has underpinned our investment in new gas fired power
generation and supported the performance of our retail business,” Mr King said.
“These CSG reserves will add to Origin’s domestic gas supply portfolio, which also
includes ownership of conventional gas reserves and contracts for purchases from
third parties. This portfolio provides Origin with the flexibility to optimise the
development of its upstream gas position to support its retail gas demand and supply
to existing power stations.
“It also positions us well to supply new domestic gas fired power generation. As
Australia moves towards a lower emissions economy, gas is likely to play a key role
as a fuel for baseload generation in place of coal given its lower emissions intensity,”
Mr King said. “Our current portfolio of gas reserves provides the flexibility to
respond to any increase in demand from gas fired power generation following the
introduction of a domestic carbon price.”