Yeah its something I'd thought would be a possibility too froggy...

Yeah its something I'd thought would be a possibility too froggy - before all the delays of 2011/12 I'd even hoped KAR would have time to prove up 7tcf reserves and sell its share for ~2500m which would then fully fund development cost of a Santos oil discovery and make KAR a cash generating explorer ala Tullow by perhaps 2014.

Sadly thats timeframe is now obviously way off. I'd think that we will probably need to have got to FEED before we'd be able to avail ourselves of WPL type terms (900m+ per tcf) and we're several years away from that. There is no doubt that an oil find in Santos basin would represent a much simpler path to monetization but still, following the PR farm-out, I can't see where KAR can raise *material* cash over the next 12-18 months without a CR. Its for this reason I'm ambivalent about WA 482P.

KAR's SP also is quite correlated to the AuD and I can only hope that over the next 18 months as Aus inevitably heads into recession that the dollar will fall precipitously. An AuD back to 85c (let alone 65c) will add dollars to the SP and just as importantly if it doesn't start falling then the broader economy is going to get ugly. Unfortunately it seems to still be attracting foreign sovereign buying and has broken its nexus with commodity prices and I can't even see IR cuts having the desired effect.