From Bell Potter
"We update our valuation to include updates to the PSC terms and recent gas sales agreement extension. We remodel our LX field and now include PSC field extensions and reduced peak plateau rates as a result of relinquishment of LX East fields, resulting in a 23% increase in our risked DCF. Change of ownership from 70% to 49% decreased our risked DCF by ~24%. We also updated our gas forecasts for the extension of the GSA with Shanxi GuoHua Energy, and increased our risk weighting of LX from 90% to 95% as it progresses past CUCBM agreements. However, as a net result of these changes our risked DCF and Target Price largely remains unchanged at A$0.27/shr while unrisked DCF reduces by 27% to A$0.48/shr."
The cut in SEH's interest is roughly offset by the field life extension in terms of the risked valuation on a DCF basis. The question for us shareholders is whether there will be a higher bidder. It seems worth holding for a while just in case and if nothing eventuates the cash bid gives me a great profit anyway.
SEH Price at posting:
23.0¢ Sentiment: Hold Disclosure: Held
