"Santos is a joint venture partner with Apache across a number of the assets, and could opt to wait to exercise its pre-emptive rights over those fields in the event of individual asset sales. BHP Billiton has the option to employ a similar strategy regarding its joint venture with Apache at the Macedon gasfield."
In 2005 Roc Oil and Tap farmed in to WA-351-P (Tallaganda) permit.. Tap’s share was 20%, Roc 25% and BHP 55%.
By 2011 Roc had success with the drill-bit and WA-351-P was no longer a priority so they sold their share to Woodside for $15.75M. Tap pre-empted that sale and sold the 25% share to Japan Australia for $30.2M plus Tap’s share of drilling Tallaganda (capped at $10M) The total cost to Japan Australia for 25% was therefore around $40.2M
In June 2011 BHP pre-empted that sale by paying $40.2M to Tap. Then BHP re-sold the 25% share to Apache. (Did Apache who is the operator of the adjoining permit have an inkling at that stage of the likely success of Tallaganda/Bunyip so they approached BHP asking them to pre-empt?)
This all happened before Tallaganda was drilled. Both Tallaganda and Bunyip-1 (about 6 km South of Tallaganda) have since discovered multiple tcf of gas.
I wonder what that 25% of WA-351-P is now worth and, by implication, what Tap’s 20% is now worth?
If Apache sells their share of WA-351-P for less than a fair price, BHP or Tap could pre-empt the sale. Hypothetically an interested. party (Woodside or Santos?) could make Tap an offer to buy Apache’s 25% share at a “less than fair price” then negotiate with Tap for the purchase of Tap’s 20%. If an agreement could be reached Tap would pre-empt Apache’s sale
BHP Price at posting:
$33.96 Sentiment: None Disclosure: Not Held
STO Price at posting:
$12.90 Sentiment: None Disclosure: Not Held
WPL Price at posting:
$40.13 Sentiment: None Disclosure: Not Held
TAP Price at posting:
61.5¢ Sentiment: Hold Disclosure: Held
