Apparently the holiday season has not dimmed or quietend the gas news industry.
Two news stories about in the SMH include the BG executive gent loosing lots of stash benefits (perhaps over $10million) dollars for insider trading(Poor fellow?). This involved buying QGC shares before the announcement of a takeover. And seconly "$171m offer lights the fire for Sydney Gas " SMH Today. More takeovers/buyins into the gas resources.
"AGL Energy's campaign to bulk up its gas resources to feed the growing NSW market has taken another step forward in the form of a takeover bid for Sydney Gas. Sydney Gas recently issued a bullish assessment of the high potential in its Hunter Valley coal-seam acreage, which is within striking distance of the crucial Sydney and Newcastle markets. The $171 million deal comes a week after AGL paid $370 million to AJ Lucas and Molopo Australia for their Gloucester Basin gas reserves. AGL now has more than a quarter of proven gas reserves in NSW. AGL has been on the hunt for gas reserves in recent months to shield itself from rising gas prices caused by growing demand for the greener fuel.
It has traditionally bought gas from other suppliers, which it then sold through its dominant retail arm, but gas prices have already risen by about a quarter in the last year.
Soaring demand for cleaner fuels in domestic and foreign markets is expected to force prices higher, which could squeeze AGL's margins if it is unable to pass on the added cost to consumers. The managing director of AGL, Michael Fraser, last week told the Herald the company would continue to explore opportunities in the "upstream" business, which refers to gas extraction. "The development of the Gloucester and Hunter gas projects will provide AGL with a new source of long-term wholesale gas supplies for the Sydney and Newcastle markets," he said.
At the close of trading on Wednesday Sydney Gas shares had surged 55 per cent, or 14c, to the offer price of 42.5c. AGL shares were down 1 per cent, or 18c, to $15.27c."
One other story but leave it to your own readinds on SMH was "THE war of words over "clean coal" technology has escalated with the launch of a new website by US environmentalists proclaiming: "In reality, there is no such thing as clean coal." The site, www.thisisreality.org, is sponsored by prominent US conservation organisations, including the National Wildlife Federation, the Sierra Club and the Natural Resources Defense Council."
Cheers Gents and Ladies?and Happy New Years
CTP Price at posting:
8.1¢ Sentiment: Buy Disclosure: Held
