another extension 9 days, page-44

I agree totally about selling.

And I also agree with Dozen that it is proving expensive to lift production, but not as bad as he is suggesting.

I think the right place to track what WCL are currently acheiving at Meridian is post the floods of 2011, (March quarter 2011) production was 8tj/d and we got that up to 13 tj/d by May 2012 and it has hit 15 tj/d before wells went offline..WCL cited production of 11 tj/d when they bought Meridian around July 2010 but production dropped away in the west season of 2010/2011.
The new wells only started to add to the production figures from then on and they turned around the field decline through workovers and they didn't really show up in the figure until mid 2011. THis work was paid for within two programs WCL have announced - (1st stage) for $14.5 mio and second late 2011 for $17 million. WCL's half that of that is $15.75.
Now you can argue admin and field infrastructure spending should be included, but you can't readily split these costs out when they are also still working on GB, Paranui and Mt St Martin..Field infrastructure upgrades need to be factored in as assets and depreciated over 10 to 15 years so also can't be readily plugged in when looking at what it cost to lift production from 8tj/d. We are discussing the cost of lifting production I think?
Fact is WCL have done alot of upgrades at Meridian and say that has cost 15 million for their share since July 2010 then that is capital investment and not entirely relevant to what it costs to increase production from this point.
If WCL were to drill 30 wells next year , will the cost of admin go up three fold, no, would in field infrastructure costs we've been experiencing go up three fold no.

Anyway, not going to bother delving any further into this. I think we will get 55c given it doesn't look like there is another bidder. New Hope and the Energy infrastructure funds coughed up $4.8 million and $3.2 million respectively at that price in the orginal cap raising to fund Meridian and I reckon they will be wanting that at least . I know they acquired a lot more shares at 45c and 25c, but I still think they will look at that price level as a significant line in the sand given the reserves have increased and price outlook for gas much improved since June 2010.
Best of luck to holders. Hope it is all done before Xmas so we can also celebrate the end of a long takeover process.