Tri-Star had entered into an agreement with LNG to supply some...

Tri-Star had entered into an agreement with LNG to supply some of the gas requirements for FL. They are a very successful private family enterprise based in Houston Texas that have been going for several generations and have had a presence in Australia for decades with office in Brisbane CBD.

They had a major role to play in Qld's CSG gas industry as a major and very successful pioneering explorer in the 1990s and 2000s. They retain overriding royalties in many of the CSG tenements currently producing or about to produce in Sth Qld. They have had an ongoing commercial dispute with Origin Energy that I don't think has yet been resolved yet - there hasn't been much news of late - but if successful could mean the rights to a significant proportion of gas flow from some of Origin's producing CSG areas. They also have a current innovative exploration programme in central Qld in the Injune area looking to exploit deep CSG which others have failed to do to date.


In my view it is a pity that LNG sold off FL, but someone did buy it with rights to LNG's OSMR technology - which of course could eventually provide a revenue stream for LNG Ltd. My guess is that the buyer could be Tri-Star or associated company. LNG in the end sold off FL to minimise cash drain and to put an end to the whinging from Australian shareholders.


To me as a long term speculator in junior mining and oil stocks LNG Ltd is steadily and progressively making all the steps one could hope for in what has been a challenging market for the commodity that is its focus - LNG. I'm not a big player like Andy B, but I have more than doubled my LNG holding while prices have been down over the last two years as I've had funds available and cashed in on other wins. For example, I was lucky to sell part of my holding in one junior recently that has so far turned out to be a 25 bagger for me and that I am sure will eventually reach greater heights, though it is going through a dip at present.


I am confident that LNG Ltd will eventually succeed and that LNG Ltd will have a much higher market cap again and that this will be exceeded by a long way over the next couple of years. The only thing that I see that may prevent me from enjoying another really big win again with LNG Ltd will be if the prematurely get taken over so I do not wish this to happen.


I have speculated in many junior companies on and off over about 50 years. I see nothing unusual or particularly concerning about how LNG management are meeting the various challenges that have come there way which is typical of all emerging companies in the mining, oil & gas sector. As a bonus, however, LNG's business model as a utility, if it keeps this model, will eventually see it with very high P/E ratios as is typical of USA utilities.

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