reflections on where we are at with esg, page-2

It's hard not to compare ESG to AOE.What NOT to do. What TO do.

To be fair to ESG they originally were exploring conventional plays so the earlier years weren't as productive for the capital base by comparison.

BUT...in the years since ESG have done very little to progress commerciality of the resource. Wilga Park isn't even running at full capacity. No doubt some of this is due to NSW State Government bureaucracy/lethargy, but the approvals are already in place. I'm astounded it's still running at around a quarter of approved capacity.

To me ESG does not have the luxury of turning on the printing press again (I agree with DB here) as the capital base is already too broad. The market comms have been arrogantly attrocious and none of us is any much the wiser as to whether or not they actually have made any progress on this front. AOE had a tight capital base, combined with a great strategy of proving up the resource base, attracting commerical partners and progressively commercialising their gas. They had a very trustworthy management team. The results speak for themselves.

I don't see any reason why ESG can't sign an MOU with LNGN partner with conditions precedent for government approvals. That's not unreasonable. It's now over a year since Casey promised off-take agreements in a few months. Clearly their words aren't to be taken literally. About time for a commercial update.