PetroChina-WestSide CSG talks continuing

BY: MATT CHAMBERS From: The Australian January 09, 2013

PETROCHINA remains in advanced discussions over a $185 million takeover of Queensland coal-seam gas player WestSide, but concerns about the deal are increasing after nearly two months of talks failed to reach an outcome and fellow state-owned giant CNOOC was blocked by the Chinese government from a smaller investment in another Queensland gas hopeful, Exoma Energy.

Westside yesterday said it remained in discussions with "the party" that submitted a non-binding 52c a share takeover offer.

"However, uncertainty remains as to whether any binding proposal which might be acceptable to the WestSide board will eventuate," the Brisbane-based company said yesterday.

It is understood PetroChina, which recently bought CSG ground from Molopo Energy and combined with Shell to take over Arrow Energy, is the third party, although WestSide has not confirmed this.

Due diligence on the assets is believed to have been completed last month.

Yesterday, news that the talks were continuing buoyed WestSide shares, which rose 0.5c to 41c.

Shares of LNG , which is looking for gas supply and has PetroChina's parent company as its major shareholder, rose 1.5c to 34.5c.

The Chinese government blocking a $24m investment in Exoma is being seen as CNOOC deciding to pull out of the deal.

http://www.theaustralian.com.au/business/mining-energy/petrochina-westside-csg-talks-continuing/story-e6frg9df-1226549832608