reserves, metrics and gas prices, page-25

I think Yaq's post which started this thread is the best we've seen on ESG and the most incisive. I vote him as the new ESG Holyman. The other guy was getting a bit indecipherable and vague, no doubt collateral damage from the smoke, haze and Red Stripe.

Yaq's commentary accords with both fact (Shell/AOE Indpendent Experts Report) and commentary from DC himself both at this years AGM and last years.

I also think it's a bit rich for our resident pessimist who is a classic enigma wrapped in a mystery to downplay it as a "ramp". Poor form and should be punished with a decent thrashing with wet lettuce!

Back to Yaq's commentary:

Last year Casey said (and remember DC and PL are very qualified in the certification process in their own right) that a number of the Qld CSG companies will have to write back some of their certified results.

It didn't happen as we thought that is, 1,000 2P suddenly becomes 670 2P, for example.

But think about it, on the basis that the price Shell ultimately paid was a combination of Volume X Rate, it achieved its goal by lowering the Rate. And a smart strategy for all acquiring companies, surely.

Yep, hindsight has proved DC's 2009 observation to be true and at this year's AGM DC gave us a further peep inside the tent which Yaq has now fully fleshed out.

I take these comforts from this discussion:

1. We have not one but two certification SP drivers (a) the volume (which will come from upgrading the existing seams and adding Hoskissons) and (b) extending the rate to account for LNG (bring on that 2,000PJ offtake that the Deutsche Report suggests)

2. DC's continued insistence that we are the lowest cost producer even adding in the pipeline transmission charges.