Just some interesting production figures on the GLNG: From...

Just some interesting production figures on the GLNG:

From Santos March Quarter Report: "The LNG plant produced 1.4 million tonnes in the first quarter, 14% above the prior quarter, and loaded 23 cargoes. The quarter included a two-day total LNG plant shutdown for maintenance. GLNG remains on track to ramp-up LNG sales to ~6 mtpa run-rate by the end of 2019."

From Macquarie Equities February Research Report on Santos : "GLNG’s tolling option: Management said the company was in talks with partners to access the surplus capacity at GLNG, with potential to open access to third-party gas. The plant will produce at 6mtpa of the ~8.2mtpa capacity by the end of 2019. With pressure from the government to make sure gas remains on the East Coast, the JV will be limited to whom they can provide access. We believe Arrow and APLNG are the most likely candidates."

So the GLNG plant appears it will still have 2,2mtpa of unused Capacity by the end of 2019.

There is a shortage of gas on the East Coast for both Export and Domestic use. The Shortage on the East Coast has resulted in high domestic Gas Prices. Comet Ridge referred to a possible A$8/GJ as a domestic gas price for production from Mahalo in its notes to its recently released half year accounts (Note 5c). This price was the same price for East Coast domestic gas prices used in the expert report on the takeover of AWE 12 months ago.

I would be very interested in seeing what the Capital and operating costs are expected to be for the Mahola project as Comet Ridges 40% share of the project could probably be worth a lot more than current capitalisation of the company if they can get A$8/GJ or more for their gas.

Regards

SP