Trading Week, page-42

We are a commercially viable enterprise whether gas prices are at record highs, or lows. If you apply the economics of the low gas prices to Australia's current exports from the East Coast, they are STILL making money. So, at these prices we are currently much much cheaper and therefore many times more profitable.

Now, say we settle in the future at natural gas prices at a meagre doubling of their current price, say in the $4 to $5 range. What is our resource worth then? How much of a scramble will there be to lock that in and produce from it? Either it's us, or a potential buyer, who will see us as an Australian CSG export bussiness Lite. Less infrastructure, lower workforce numbers, higher reliability, minimal transport costs, 15 years + of in house direct expertise and networking for extraction of the resource.

It's all there. No massive LNG plants with turbines and exchangers and storage tanks and loading docks and huge LNG ships. Alot less inventory for maintenance. Many, many less gears and cogs in the system where faults and reliability could hurt. Just compressors, water treatment and maybe amine and TEG drying and wells infrastructure. Take the GLNG, APLNG and QCLNG businesses, keep the same revenue models and simply remove the downstream processing and delivery components and that's our model.

It's not going to be overnight, but judging by the conviction and patience of Mr Young, it's eventually possible and more and more probable as the days and weeks roll on.