JR sums it up clearly: 1. We have the highest quality rocks - world class 2. Domestic structural short supply which will enable us to drill first 100 wells to satisfy near term term demand > enable us to better understand type curves, drilling efficiencies, completions 3. Best frac tech and capabilities
Underpinning this, LNG opportunity:
1.$75bn of gas infrastructure in Australia that’s running out of gas. Compelling LNG pathway.
2. Australia is relied upon by Japan and S Korea for energy security.
3. Geographic proximity
Financing:
1. NYSE IPO - access to deep debt and equity markets, significant expertise in shale and LNG
2. Near term: as we get closer to pilot production, farm-out with an IOC, ideally Australia-based (Shell, Conoco, Santos), East coast, need to back-fill LNG supply. Post the well test which we will be announcing shortly, start farm-out process. Non-dilutive, de-risking reserves. Aiming to book 7-10 TCF > $7-10 billion of value, shared with farm-out partner. Over 24 months. Underpin east coast pipeline financing.
3. Prepaying gas volumes precedent in Australia. Non-dilutive.
4. Australia, unlike elsewhere, fixed price, CPI+ gas contracts are more like infrastructure contracts. Debt financing opportunities, infrastructure project investors.
Right resource theme at the right time.
Best opportunity for pure play exposure to Asia-Pacific LNG short and long term. Building the next large E&P co with exposure to high margin gas focused on fastest growing LNG market. One of the biggest drivers in reducing carbon emissions in Asia-Pacific.
Positive force - energy security and emissions.
TBN Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
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