thumbing their nose at santos and others

- ESG already has a very large resource and reserve
- ESG's long awaited reserves upgrade will be in August - ESG about to get even more 'bloated' with reserves.
- ESG has not signed a GSA for a single joule of gas (WP aside)
- ESG has a very weak share price
- And yet, ESG says this to the market:

"Time will give greater clarity and confidence around matters including approvals, electricity market outlook, the need for new electricity generation and the nature of any future carbon regime. When we identify that the time is ripe to act, we are positioned to do so quickly."

So, in other words, 'we are in no hurry to act, and are not going to sign anything anytime soon. We know you majors are behind where you wanted to be in terms of reserves, we know you have huge risks, huge capex, and need both a diversity of supply and extra gas for economies of scale... (and you are already committed to your projects) but we are not in a hurry to sign anything!'

Tough talk from a 'junior' with a low share price!

IMO, it points to a confidence of knowing there are multiple suitors who have been through ESG's data room, need the gas, have the money to spend and want to acquire ESG. And that auctioning themselves was ESG's aim all along.

If you want our gas, you will have to come and take it.

I don't think ESG will sign any GSAs. Why would they? All that does is limit their appeal to all but one of the suitors.

And ESG probably doesn't really mind their low share price either (and are not attempting to talk it up). In fact, they have just told the shorters 'don't worry, we won't be signing anything'. They know that if they prove the big reserves, the buyers are there.

Eventually, something will have to give. Because the need for the gas is so great, and ESG is so intransigent. And soon to get even more bloated with reserves.

Yaq