re: neo- spp underwritten ??? Good post Chand.I saw somehwere...

re: neo- spp underwritten ??? Good post Chand.

I saw somehwere that the company said it was considering an underwriting of the spp.
They dont have to announce taht if its not done .. I suspect its academic anyway as the SPP will be taken up in full anyway.
It may be that Kain has 'business friends' who would take any shortfall (maybe this is what he meant by 'it is underwritten? )

This lack of info. thing relating to neighbours quickly getting drilled and sneaking out gas from the fringes makes sense to me.... however they can only stall for so long and all will have to be revealed..... I think the 'neighbours' are Aera LLC anyway , so its probable the JH JV are trying to 'jag' more acres cheap imo.

10~20bcf per zone is huge .... thats about 130bcfg from the shallows alone worth about A150m after royalties or 21cps(inground basis) or revenue basis = 42 cps.

How quick it comes out of the ground is the next hurdle ... not doubt fraccing will be required over at least some of these zones.

Cheers
SALTY