SEH announced that it had finalised the Linxing development phase PSC cost allocation principles with its PSC partner CUCBM. The parties are still deciding on the allocation of costs between development and exploration which may affect whether SEH can recover some of its sunk costs from 100% of the project revenue or from its own share of revenue. The SGE JV (SEH 49%) will have to carry all the development costs until the CUCBM receives full project investment committee approval from its parent CNOOC. Argonaut maintains a BUY recommendation but due to timing uncertainty, our $0.24/share target price is under review.
To access our review of Sino Gas & Energy please log in under the Client Area Log In at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.
Perth:
clientservices@argonaut.com
+61 8 9224 6888
Hong Kong:
clientserviceshk@argonaut.com
+852 3557 4888
