Today is a special day, it's happy 1st birthday to Walyering Gas Project FID.
Back in August 2022, the Walyering Gas Project was heralded as "low cost" and "fast to market" with gas expected to enter the system by December 2022, and first sales expected in Q1 CY2023. Project revenue was forecast at $50M-$70M based on prevailing prices in the first 5 years. In years 6-10, production volumes were expected to tail off over giving an expected field life of 10 years.
What actually happened is a new low in standards of corporate communication.
The project is now 9 months overdue, over budget, but project revenue is now forecast to be "in excess of $82M per annum". This ofcourse is cold comfort to TPD SH who are now being asked to part with their share of the first 5 years revenue of in excess $185M for just $140M in scrip, and give up the next 4-5 years for free. As well as underpaying for Walyering, STX also want Condor, TPDs 25% interest in the TEG JV, and the northern component of EP447 for free.
Anyone wanting to read more on how Walyering went so wrong, here is a quick summary of the year in review.
Walyering Gas Plant review.pdf
