Timely boost to gas producers and explorers

Things are looking super positive for gas in particular. HOG have told us the following....could today be the day?

"The Directors advise that the Company is in advanced discussions with respect to a share placement with a private Australian entity. These discussions also entail potential board changes and further financing measures to enable the Company to pursue Oil & Gas acquisition and development opportunities in more politically stable countries outside of Eastern Europe."

http://www.theaustralian.com.au/bus...r/news-story/39fc49241eeb61550dc53fd4a081e095

The South Australian government’s $550 million intervention to fix its energy problems has delivered a timely boost to gas producers and explorers in the state, amid expectations it will spur a new wave of exploration.
Shares in South Australia-focused players Beach Energy and Senex Energy surged yesterday ahead of the trend among their peers, as investors looked for winners from the government’s decision.
The state’s $550m investment will include the construction of a $360m gas-fired power plant, as well as incentives to drive the development of gas resources around the state.
Senex managing director Ian Davies said he was “very supportive” of the SA plan.
“They’re taking matters into their own hands, no doubt, but given the challenges they’ve faced recently they will feel they need to,” he said. “Given the recent history in South Australia, this is a very reasonable step.”
Senex and its joint venture partner, Origin Energy, yesterday announced they had started drilling on the $15m Silver Star well in South Australia’s Cooper Basin, with the companies targeting “material” gas volumes.
Mr Davies said while the SA plan was a solution for the state, there was still a need for a national approach that would resolve the power issue around the country.
“The issue is the federation,” he said. “There’s a series of state-based policies that are not co-ordinated and in no way aligned with the national policy.”
Mr Davies’ embrace of the plan was echoed by Beach, which holds interests throughout the Cooper Basin.
“Beach commends the South Australian government for the announcement of its energy plan, in particular, the incentives which will support the oil and gas industry to increase exploration and bring more gas to the market,” a Beach spokeswoman said.
The SA plan also has potential implications for retailer AGL Energy, which owns the 1280 megawatt Torrens Island power station — the single largest power station in the state and the largest gas-fired power station in Australia — as well as wind farms around the state.
AGL in a statement described the energy plan as “a considered and comprehensive approach to meeting the current challenges in the market” that would improve energy security and reliability.
“AGL looks forward to working with the South Australian government on these reforms and is pleased that the government recognises the vital need to secure more gas to assist in the energy transition.
“Increased gas supply is a key way of improving energy competitiveness for South Australian businesses and households,” the company said.
“While national reform of the energy market architecture is urgently required, these South Australian reforms will address some key issues required for the more cost-effective integration of increasing renewable energy generation, and the foreshadowed integration into a national Energy Intensity Scheme is welcomed.”