re: cs energy make $2.5 mill and get the hell out I suppose this could be read as a vote of no confidence for CS energy...sure they have cashed in an asset while also transferring the development risks ti QGC and simultaneously locking in a good gas price into the long-term contract...however, they also miss out on the upside from increased reserves which can, and will, be piped to Argyle for either Incitec contract and the proposed power station. CS's decision might have been dictated by an unwillingness to invest more in the field as this point in time and a desire to increase their cash reserves whilst getting out of managing risks they have neither the time nor expertise to manage. Hard to really tell. In contrast, QGC increase certified reserves so even if CS pull out (i.e. the last contract wasn't too binding it seems) they can channel them into quicker completion of Incitec contract.
Personally, I would have preferred QGC to have spent the SSP funds on something else (i.e. power station funding)...I think they will issue more than the 14 million dollars mentioned now...we might all get our 20000 shares (if we still want them). Strange situation in which the more the dilution, the greater the long-term prospects of the company (i.e. the quicker they get the Incitec contract and the lower the cost of funds will be for the proposed power station...which they would need to finance at some stage).
Lots of uncertainty with this one...will be a bumpy ride...still think the long-term prospect are very good.
QGC
queensland gas company limited
