Hi @MrMozambique
Thank you for your detailed report.
I'm hoping you and anyone else here interested can weigh in on some of the questions below.
1.
"The company mentioned in Slide 18 of theAGM Presentation is still very real, it’s a $100m pa opportunity and this isstill being actively pursued and worked. This is in addition to the QGC opportunity that has been won."
I'd assumed that this was the CSG contract just won as slide 18 also mentioned -
"The feasibility study proposal is in the process of seeking funding approval from the client’s board of directors"
Then from the Dec Quarterly:
During the 2021 Annual General Meeting presentation, the Company foreshadowed its expectation of being awarded a contract to perform a feasibility study by a major global company. The Company has been subsequently advised the client has secured internal funding approval, with the parties working collaboratively to finalise appropriate procurement and contractual arrangements. Parkway cautions that although the discussions with the client are well progressed, there can be no certainty that the feasibility study will proceed or that a term sheet or other binding agreement for the delivery of the project will be entered into.
Q1 - Aren't these one and the same?
2.
"Shell has two water plants in their CSG business and they are operated by one of the world’s largest water treatment companies."
Q2 - Does this feasibility report incorporate both/all plants into their solution, or just one to get the ball rolling?
3.
From Veolia's website:
Water Treatment
In April 2013, Veolia was awarded a 20-yearcontract to operate and maintain QGC’s three water treatment plants which treat groundwater produced alongside natural gas. Veolia was chosen for its unique expertise in managing the complete production water treatment cycle in thecomplex field of unconventional oil and gas.
Utilising a highly skilled team of 55 employees including electricians, instrument technicians, plant operators and water engineers, Veolia operates and maintains the water treatment plants ultrafiltration, ion exchange, reverse osmosis and brine concentration equipment in addition to pump stations and electrical substations.
The gas field operated by QGC spans 4,500square kilometres. Plans call for drilling of 6,000 wells by 2030 and Veolia will treat the production water of each new well brought on stream. In all, close to 200,000 cubic metres will be treated per day (the volume of 80 Olympic swimming Pools) and a very high-quality end product will be guaranteed on along-term basis. The production water, which is pumped up from the wells at the same time as the methane, has high salt content and must undergo complex treatment before it can be reused in industry or agriculture.
Q3 - What's you anticipation of PWN/Veolia coming to an agreement on the management of the iBC Plant, if the build contract proceeds, or can we manage it alone or engage another water industry player?
Q4 - Do you see any likelihood of a backlash fromVeolia with PWN trying to gain a foothold that could potentially jeopardize a PWN build contract proceeding - in your opinion?"
I asked whether or not that Water Industry Partner that was mentioned in the Feb 21 Corporate Update could be in the mix. He just said maybe/maybe not. But they are still around and they are still talking about opportunities.
4.
"I suggested that it would not surprise mewhen the FS is complete and QGC provides a positive FID, that we could see a Veolia ( $USD20b company) have a crack at Parkway for the tech. Think 10cents a share and Veolia could potentially control solutions for a multi billion dollar CSG industry in Qld alone for $AUD200m (peanuts for them). Worley would surely be on that list too given how much more they know than any other player. All speculation on my part but Bahay didn’t “not” agree."
With QGC (Shell) being 50% of the CSG market in QLD and having approximately $150mil in liabilities per annum (4.5bilover 30 years) wiped by adopting PWN's tech, 10c a share puts PWN MC at+200Mil.
From 7th April ANN:
In this context, the Company considers that the brine processing and disposal related liabilities accruing to Queensland’s major CSG operators (estimated to be up to $9.2 billion for the currently operating CSG projects5), represents a directly addressable market for the iBC®technology, with no viable alternative pathway identified by industry to date.
Q5 - What's your thought's on whether PWN should consider any offers, once it lands a build contract, or do you think they should or would hold out for a period of time?
Q6 - If hypothetically (speculation) an approximate 10mil p.a. contract over 20 yrs was announced with QGC for iBC, what would you constitute as a fair offer, considering this may be the first of a number of contracts? - Maybe too early for these discussions but I do enjoy the speculation and seeing others thoughts on this.
I hope the above queries are reasonable and I appreciate your time and effort as always Mr.M
Cheers!
(20min delay)
