Hindmost, my belief is that the market is concerned that upon the election of a shorten government there will be strict export controls placed on the Gladstone exporters giving a much greater supply of gas for the domestic market. Currently the pricing disparity between the Asian delivered price and the east coast price is huge and if our domestic price were to fall to any level close to the Asian price then senex’s assumptions of approx $9 could be at risk. Furthermore, in looking at cooper energy who have most of sole’s production contracted and locked in, Senex does not so is very much at the mercy of regulatory changes and this is very much reflected in the current prices of each. Cheers
SXY Price at posting:
32.5¢ Sentiment: Buy Disclosure: Held
