sapex has too much potential

This is Mr Lincoln Augustus, first second cousin of Holymagiman

Hello everybody,

It seems to me that the way Linc is approaching the deal is like the person who brings the chicken wings and then wants the whole of the meal for himself. Yes, Holymagiman and I have met a few people like that before, who come with a little and want a lot in return.

So Linc claims that it has coal to energy technology but they need the coal of Sapex for the process if the idea is to supply BHP's Olympic Dam site. For the UCG, Linc needs Sapex as much as Sapex needs Linc. But Linc has to realise that, in the scheme of things, it is not the only UCG supplier available, whereas Sapex is the only strategically placed coal supply near Olympic Dam

And if Linc does not want to play ball, there is always Cougar or MEE to step right up. I believe that a few UCG parties approached SXP before for JV but LNC was given the nod. In other words, someone else could well have been there instead of LNC

The purpose of all this is to question why Sapex has to even consider giving up its COAL BED METHANE RIGHTS and its OIL EXPLORATION RIGHTS and its VAST ACREAGE to a company like Linc, which may or may not prove to be successful in its process.


This does not seem to be right, and Holymagiman will vote against the merger, if the offer is for Sapex shareholders to get Linc shares for their Sapex shares.

The coalbed methane by itself could far outweigh anything that Linc can offer. Sapex is in JV with Eastern Star Gas on this one, and Eastern Star Gas have the CBM crew from Origin on their books. What more needs to be said? The espertise is there, the techniques are there and the coal is there in a Sapex-ESG JV. So why should Sapex give all this potential up to Linc???

Then we have the oil exploration potential in a very unexplored basin, right next to the Cooper Basin. This does not make sense at all to give this all away in a merger (read this as take-over) by Linc.

No wonder the Linc posters are suddenly all over this Sapex site like blowflys in a paddock.

But, at the end of the day, it is shareholder approval or disapproval that is going to make the difference

So we will have to sit back calmly and see what is on offer. Remember that the ESG guys own a large whack of shares, and also remember that your votes will also count in the end.

Yours etc, etc
MLA