Ann: Indicative proposal - due diligence update , page-4

re: Ann: Indicative proposal - due diligence ... Goodaye Guys,
well disappointing no formal offer yet.
whilst we could expect a drop in SP as a knee-jerk reaction to delay of offer, only 26,173 shares have gone thru ie thats only $9,160 ! my wife spends more than that on a pair of shoes!

Whilst we got no real info from the WCL release, I guess that is to be expected, because all WCL can do is co-operate with LNG and give them all the data.
It's then up to LNG to come back with a response.
But I guess, at some point, WCL will need to tell LNG to "put up or piss-off!".

The take-out I got from the LNG release was:

1. the Agreement to lease with Ports has been extended by 6mths to Dec 12, as a result of LNG presenting to Ports their status wrt gas supply negotiations. So one can assume that there have been material progress on that front. But with whom?
Of course, that will relieve some pressure on LNG to resolve the WCL Offer quickly.
(i think Hendrous mentioned the pssibility of a lease extension a while back?)

2. the other thing I noticed is LNG's minimum requirement for gas supply to get their LNG plant running, has dropped from 140 Tj/d down to 135Tj/d. ie from 50pj/a down to 45pj/a.
IMO that makes it easier for LNG to get all that requirement from Meridian/Mitsui/ Molopo dirt?

March Qtrly:
"The Company has therefore been negotiating for the minimum gas supply of 140 TJ/d, with
gas supply parties which have aggregate uncontracted deliverable gas reserves of at least
760 PJ and potential for deliverable gas reserve growth."

June
"The Company’s primary focus in the immediate term will be to secure, by one or more of the
abovementioned options, gas supply of at least 130 TJ/day (45 PJ/year), being the minimum gas
requirement for the first LNG train to proceed to final investment decision. The Company will keep
shareholders informed of any material progress in relation to its gas supply plan."

So as posters above have already mentioned, at least they are all still working on D/D. Note WCL says advisors are still doing D/D.

The other thing is, if LNG were to lodge a bid, they would need to come to some definitive arrangement with Mitsui, as Mitsui is J/V partner in both Meridian and MPO, and would surely have pre-emptive rights.

SO I am sure that some of the delay would be getting the Japanese and Chinese locals, then Head Offices, then their respective Govts to sign off on any agreement. All that would move at glacial speed.

cheers