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Gas-fired recovery plan a boon for Jemena's pipeline ambitions

www.theaustralian.com.au › business › economics

2 hours ago — Jemena managing director Frank Tudor: 'We would need to make our pipeline ... the vast potential of the Beetaloo basin in the Northern Territory to Queensland, ...

rest is subs...

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Once Jemena gets the green-light the route to monetisation will be open and the market loves nothing more than a huge wad of cash upfront and the promise of a special dividend or take-out

Having BHP and Newcrest on our register convinced Franco to sign up to the royalty deal. The presence of those two majors on our register and the political backing of the Eckwardoorien government should not be underestimated

I suspect Franco appreciates that when BHP-Newcrest do take control of Alpala the process to production will be much swifter, cheaper and efficient

If you were a banker how risky would you perceive loaning debt capital to a cashed-up, easier access to debt capital BHP-Newcrest combo developing Alpala relative to a cash strapped explorer like SOLG that's never built a mine in its entire feckin' company life? You'd go with the former, obviously

Debt capital to SOLG is a gamble. Debt capital to BHP-Newcrest, BArrick, Rio etc etc is not so much a gamble but an investment

It's a mortgage provider loaning a 100% mortgage to a single person with a single income to buy a 250k property versus loaning money for the same property to a dual income couple with a cash balance of 500k and other assets to fall back on as security

And this is Ecaudor so bankers are gonna want a premium for loaning capital to companies operating a higher risk jurisdiction

Take away BHP and Newcrest and SOLG would struggle to raise this level of capital and those who think differently are talking out of their rectimus rearendimus

''Hi Quady, just for you.......THIS IS GOING TO PRODUCTION! :-)''

Yes, it certainly is but it won't be owned by Solgold :))))

https://ceo.ca/cgp

thanks to Pob

JV's involve dilution, sometimes hefty dilution and indeed loss of operational control as we have seen at GGP (Havieron). I don't believe Mather wants to see that happen across SOLG's portfolio. He wants 100% of it all until monetisation can be achieved. They did it on Alpala cos CGP have been to all intents and purposes little more than a sleeping partner

I doubt GGP would have agreed to such dilution at Havieron if it had the cash.

SOLG need to keep drilling the shiitte out of its exploration assets and then sell any discovery for a large wad minus taxes of course

CD - You put these things so well and in a manner that the less gifted amongst us (including myself) are able to understand. Love it

Dbw

Yes. Newcrest signalled their displeasure with Mather by removing their proxy from the board while in the press the board of SOLG is still referred to as 'BHP backed' though I think there's an understanding between (Mather, Henry and Biswas) beneath the veneer

Interesting to see the news today about Ecuador's commitment to contract vis a vis Llurimagua. It is beyond important for the future of Ecuador that they solidify and cement confidence regarding contract and property ownership. Now they've joined this EEITI or whatever it's called then that helps enormously in dispelling the perception that Ecuador is a risky jurisdiction for private companies to operate

For SOLG, it's all heading in the right direction on all fronts

I believe someone will buy CGP in the next few months. CGP's major shareholders know this which may explain why they rejected Mather's overtures.

I believe Irwin etc etc already know they'll be able to secure better takeover terms from someone other than SOLG. I bet it's Newcrest

The NT is a significant part of Australia’s gas industry. Offshore gas processed in Darwin accounts for 11 per cent of Australia’s LNG production.

Darwin is also a key LNG export hub, with the onshore processing facility for the Ichthys LNG Project, the Darwin LNG Project, and the world-first Prelude Floating LNG project in the Timor Sea.

Last month, Prime Minister Scott Morrison and Minister Taylor released the Government’s comprehensive plan and vision for a gas-fired economic recovery.

This plan is focussed on three action areas:

unlocking supply,
ensuring there is efficient transportation,
and empowering consumers.

In addition to the Strategic Basin Plans, the Government’s gas package includes an inaugural National Gas Infrastructure Plan that will identify priority pipelines and critical infrastructure needed for the future.

The Government will also establish an Australian Gas Hub at Wallumbilla to improve price transparency, renegotiate the Heads of Agreement with exporters to strengthen price commitments, and facilitate an industry-led code of conduct to level the playing field in gas contract negotiations.

end

Minister for Resources, Water and Northern Australia Keith Pitt says this is an important milestone.

“The Beetaloo Basin has enormous potential for the Territory and the country, and it’s great to see this work getting underway” Minister Pitt said.

“Our Strategic Basin plan will drive more jobs in regional Australia and provide the cheap reliable energy industry needs to grow manufacturing.”

Empire Energy is evaluating the potential to produce gas from the Velkerri Shale in the Beetaloo sub-basin. Recent exploration has shown promising signs, finding liquids-rich gas at a shallower depth than previously expected.

Beetaloo was chosen as the first location for the first Strategic Basin Plan to capitalise on industry momentum and to build on existing government initiatives in that region.

This includes the $8.4 million already committed by the Government to accelerate the development of the Beetaloo including conducting additional environmental work and work to ensure the gas development will benefit the Aboriginal Peoples of the Barkley Region and the Northern Territory.

While visiting the NT, Minister Taylor has also held talks with Northern Territory Minister for Renewables and Energy the Hon Eva Lawler MLA to discuss a Commonwealth-Northern Territory energy and emissions reduction agreement.

The Commonwealth and NT Governments signed an agreement in late 2018 to work together to develop the Territory’s gas industry.

cont...........

https://www.minister.industry.gov.au/ministers/pitt/media-releases/beetaloo-basin-key-element-gas-fired-recovery

17 October 2020

Joint media release with Minister for Energy and Emissions Reduction Angus Taylor

Minister for Energy and Emissions Reduction Angus Taylor will today visit the Beetaloo Basin in the Northern Territory to build on the Morrison Government’s gas-fired recovery plan.

Announced as part of the 2020-21 Budget, Minister for Energy and Emissions Reduction Angus Taylor said the Beetaloo Basin is the first of five key basins to be explored under the Morrison Government’s $28.3 million Strategic Basin Plans.

“The Beetaloo Basin is a world-class resource that has the potential to drive significant development in the Top End to create local jobs and help Australia remain a world leader in gas," Minister Taylor said.

“The Government’s Strategic Basin Plans will accelerate this development, driving investment and job creation in our regional and Indigenous communities as we recover from COVID-19.

“The Beetaloo Basin has the potential to supply more gas to Australian homes and manufacturers, helping to increase competition and drive down gas prices across the market. This will mean more Australian gas is working for all Australians.”

Minister Taylor will inspect progress of Empire Energy’s test drilling program at its Carpentaria-1 site.

Minister for Resources, Water and Northern Australia Keith Pitt says this is an important milestone.

Home > Pitt > Media Releases > Beetaloo Basin a key element of the gas-fired recovery
Beetaloo Basin a key element of the gas-fired recovery

17 October 2020

Joint media release with Minister for Energy and Emissions Reduction Angus Taylor

Minister for Energy and Emissions Reduction Angus Taylor will today visit the Beetaloo Basin in the Northern Territory to build on the Morrison Government’s gas-fired recovery plan.

Announced as part of the 2020-21 Budget, Minister for Energy and Emissions Reduction Angus Taylor said the Beetaloo Basin is the first of five key basins to be explored under the Morrison Government’s $28.3 million Strategic Basin Plans.

“The Beetaloo Basin is a world-class resource that has the potential to drive significant development in the Top End to create local jobs and help Australia remain a world leader in gas," Minister Taylor said.

“The Government’s Strategic Basin Plans will accelerate this development, driving investment and job creation in our regional and Indigenous communities as we recover from COVID-19.

“The Beetaloo Basin has the potential to supply more gas to Australian homes and manufacturers, helping to increase competition and drive down gas prices across the market. This will mean more Australian gas is working for all Australians.”

Minister Taylor will inspect progress of Empire Energy’s test drilling program at its Carpentaria-1 site.

Minister for Resources, Water and Northern Australia Keith Pitt sa

With projects of this size (Alpala) the initial CapEx targets are always way off, always. $350m will quickly turn into $450m, then $600m and then $700m...

Newcrest is quiet, very quiet to the point of removing their only voice from the board of SOLG. I wonder what their role will be. BHP's silence comes to an end next week. I wonder if they'll have something to say? I hope so

It's genuinely fascinating stuff and to be included is intriguing if at times somewhat unnerving!

BHP deal with corrupt governments and dodgy regimes every day of the week. CGP is hardly gonna pose a challenge to them

This is doin' my tiny brain in.

SOLG is now doing the right thing. Getting down to what it does best, exploring and hopefully letting the bankers-lawyers to sort out the legalese nonsense that is ENSA-Cascabel

'except to the extent necessary to secure financing of its proportionate share of project development '..

As P69 pointed out, the above is emphasised and underlined. So can CGP use their 15% in ENSA to raise capex funding for Alpala? That's the crux. CGP appears to think so...

Cornerstone Corrects False & Misleading Statements by SolGold

OTTAWA, Oct. 16, 2020 (GLOBE NEWSWIRE) -- Cornerstone Capital Resources Inc. (“Cornerstone” or “the Company”) (TSXV:CGP) (Frankfurt:GWN) (Berlin:GWN) (OTC:CTNXF) rebuts certain inaccurate statements made by SolGold plc (“SolGold”) in its October 16 news release commenting on its failed hostile bid to acquire Cornerstone.

SolGold states in its October 16 news release “Cornerstone may not use its interest in ENSA directly or indirectly to secure debt funding without SolGold’s consent and SolGold holds a pre-emptive right to approve or disapprove of any dealings of Cornerstone in its direct or indirect interest in ENSA.”

This is false and misleading. Pursuant to the Cascabel Earn-in Agreement, (1) no party may grant security over or otherwise encumber its participating interest, except to the extent necessary to secure financing of its proportionate share of project development; and (2) no one has a right of first refusal (ROFR) over a sale or change of control of Cornerstone, the listed company in Canada.

Greg Chamandy, Chairman of Cornerstone’s Board of Directors and a holder of over 10% of the outstanding Cornerstone common shares, said:

“Following the embarrassing hostile attempt by SolGold, that was 100% certain to fail even before it was formally launched, it is not a surprise that the SolGold Board continues to repeat false and misleading statements in an attempt to hide their incompetence. SolGold’s suspect corporate governance, self-dealing practises and waste of significant resources simply confirm that the SolGold Board is incapable of managing the affairs of SolGold for the benefit of all shareholders in a prudent and transparent manner. Cornerstone will provide an update on our intention to requisition a general meeting of shareholders of SolGold in due course.”

It's getting nasty

https://ceo.ca/@nasdaq/cornerstone-corrects-false-misleading-statements