should BPT take out ICN now?, page-19

Bystander. I have never thought that Beach would want to take over Icon. They have had innumerable opportunities to do so in the past and have always chosen lesser "fish".

I really think that Reg just might have his eyes on that 20 year GSA that Icon has already signed up. That is to provide 110Bscf p.a. at the Tapis oil rate.
Now, as we know, the price of gas sold domestically is nearly half the price of that which is sold for export to Asia, and that could change with extra competition, but, that just makes existing GSAs even more valuable.
Now, that GSA enables Icon to joint venture it with any other party and can source the gas from virtually anywhere. It is extremely flexible and very advantageous to the holder, Icon.
BUT, it is not transferable should Icon be taken out!!!

Now, my question is, why would Reg go to all the trouble and expense of developing 218 and 855, without a GSA, and no certainty as to what price he might now get for it? Instead, offload 60% of all of his costs, retain 40% of his previous holding, and just j/v the GSA with Icon.
He could give them a 25% "brokerage" fee and still get 75% more for the same gas and let Icon do all the selling for him.
By his j/v with CVX, he has "saved" the company $349 million, 60% of his costs, yet, be earning about the same from selling the gas through that GSA. And that GSA will need every bit of gas that they can find to satisfy that 110Bscf P.A. condition, 100 wells producing 3MMscfd!!!
There is more than enough to satisfy everyone, so, why kill the goose that lays the golden egg by taking over "the goose", Icon??

And I reckon that Reg and Ray would swallow their egos to stay in the game and get as much of the action that they can. They are getting too old to lose this once in a lifetime opportunity.