Where do you think TEG is heading ?

I have always liked watching the die-hard shareholders talk up the falling value of their TEG shares. Over the last week we have got excited watching those more smarter play kick to kick with TEG shares, waiting for an unsuspecting buyer to pop up and then hitting that buyer hard. You have all seen it before when the share price quickly rose to over 4c just as the 3c SPP deadline was extended. TEG get the suckers to part with over $3 mill and then shares fall back to below 3 cents. A fool and his money ....

Let us all just get the facts straight:

In 3 days TEG has nowhere to sell its oil. That means no cashflow. It has had ample time to make alternate arrangements if it could but the latest deafening silence in their Investor Presentation on this very important point speaks volumes. TEG will have no cashflow in 3 days. If they were to get a similar arrangement to Buru then they would still be without any cashflow for many months while the tanks fill at Port Wyndham ready for a full boatload.

That should tell you all that TEG will again need to raise capital just to stay alive or it will need to mothball the Cliffhead operations to save costs.

The current action in the shareprice suggests that a capital raise is likely but I find it hard to believe anyone would give them money again.

You need money to do things in oil and gas exploration, TEG has none. Drilling Mt Horner takes funds. Drilling Cliffhead takes funds. Que a "Farmout campaign". Who in their right mind would partner with TEG drilling a Cliffhead when there is a huge overhang of abandonment expenses? Talk of a farmout at Cliffhead is just a powerpoint filler.

You say - don't worry about those things we are going to tansition to the largest offshore wind farm in Australia - please!. Offshore wind in Perth has no chance of getting up environmentally or from a cost perspective. There is plenty of land available so why do it offshore. Also do you think Perth needs all this new energy when solar is taking a huge bite out of the demand?

Also, if you really think the GAS news is great then you don't know Qld coal seam methane. TEG shares would halve in value the minute they tried to put them on the market. Any funds raised from the sale of GAS shares would be quickly eaten up with Cliffhead mothball costs and abandonment. That is why TEG is capped below its value of GAS shares. Its not undervalued.

Goodluck to all that continue to hold TEG shares. Keep positive but don't get caught up looking through rose coloured glasses - see the facts.

My prediction is that TEG will try a capital raise over the next 8 weeks. TEG will not have an alternate sale arrangement in place for its Cliffhead oil and will go for many months without cashflow. Noone will farmin to Cliffhead. Maybe someone would join them at Mt Horner but drilling and production would be many years away. An offshore wind farm will be a powerpoint filler only and a basis to distract government from making them fulfill their abandonment obligations.

Share price will drop below 3 cents next week.