Extract from today's The Australian: Uncertainty about...

Extract from today's The Australian:​

Uncertainty about government policy is holding back junior oil and gas companies from taking full advantage of the buoyant conditions in the east coast gas market, and is deterring investors from punting fresh capital into the sector.​

Fund managers, analysts and executives told ​

The Australian ​

that equity prices across the local oil and gas space were yet to reflect the strong outlook for east coast gas prices, due in large part to the volatility in policy at both state and federal levels.​

But Flinders Asset Management fund manager Andrew Mouchacca said the tight supply and demand fundamentals spelt out in recent reports from regulators were not close to being properly reflected in the share prices of companies in the space.​

“From my perspective, it is clear from the commentary in and around the ACCC reporting on demand and supply, together with the recent AEMO report on the Victorian market, that either the market is deluding themselves or they’re not taking much of an interest in the fact that there will be a significant shortfall in the domestic gas market in the medium term,” Mr Mouchacca said.​