Seems to me that ESG is worth a lot more than 90 cents already...

Seems to me that ESG is worth a lot more than 90 cents already ... before the upgrade. How many times has DC told us that the only thing stopping ESG's contingence resource being reserves is a market. Obviously now there IS a market via STO (swapping NSW domestic supply so as to use Cooper Basin gas for GLNG) and TRU using ESG's gas for power gen. Gas prices are going to rise torwards export parity even for doestic use as they have in WA. So as Yaq has pointed out the economics are different and gas resources that may not have been commercial at $3/GJ will be at $7+ .. that alone should increase reserves substantially. As will converting 3C to 3P.

It doesn't make sense for the ESG board to rollover as they apparently have when so much value can be added to ESG by way the the coming upgrade or by way of a deal to sell gas. I mean really ... if the company was under threat of being stolen cheaply by STO wouldn't the boar have aresponsibility to find ways to maximise shareholder value .. say by doing a GSA for a large amount of gas ... they have 6,000 PJ of 3P+3C which they could sell and in doing so they prove the market is there. Wouldn't YOU do that if you were uunder threat of being ripped off? Hmmm what would that we worth .... 6,000 x $7/GJ x 1,000,000 (GJ/PJ)= $42 billion. Even if you use current dom gas prices of $3-$4/GJ that's $20 billion.

This what ESG's gas will be worth at some time in the future (and that's without an upgrade). Even applying a HUGE discount for the immaturity of the gas field and regulatory uncertainty etc etc ... surely a figure of less than $1b is LAUGHABLE.

H