All things considered equal and the gorgon project going ahead as I forecast in a forum posted a few days ago, (will cut and paste) my guess is around $3.00 - baring in mind no takeover premium
****Final Investment Decision (FID) tipped to be given at the quarterly earnings conference call of Chevron July 31st 2009***
Over the past month or so things have really started ramping up for the Gorgon Project
Contracts have been negotiated to supply China, India, Japan, and South Korea with a large percentage of the LNG that will be produced from the Gorgon Fields
Gorgon have been given the green light by the ACCC to market gas to Western Australian customers
Numerous companies have signed off on major work, as listed below
Mermaid Marine Australia Pty Ltd has signed a formal sublease agreement with Chevron Australia Pty Ltd to support the development of the Gorgon Project in a deal worth A$100 million . The company will build a 56000 square meter warehouse on their supply base in Dampier for Chevron
Agility Project Logistics has entered into an A$250 million agreement with Chevron Australia Pty Ltd for supply base operations and transportation services to support the Gorgon Project.
Kentz Corp Ltd , Thiess Pty Ltd and Decimal Pty Ltd signed a contract worth about A$500 million . They have been contracted to design and build a construction village on Barrow Island, Western Australia,
Toll Group has entered into an $180 million agreement with Chevron Australia to manage logistical services on the Gorgon gas project on Barrow Island off Western Australia.
This is exciting times for the gas industry and even with all the volatility in the market, THE GORGON PROJECT is on track to go forward
As always the above comments made by me should not be treated as investment advice
***Please note that the date indicated by me for a FID on THE GORGON PROJECT is only an educated guess, and should not be taken as factual information
MRM Price at posting:
$1.75 Sentiment: Buy Disclosure: Held
