buy 1 esg share and get 3 free!, page-8

woah...why would u trust an accountant who gets his 2P & 3P mixed up, caught u plumb there good sir (but I understand y'r point) !!

Here goes, ESG's 2P are 1520 PJ & 3P-1818 PJ

I'd test the logic of a t/o by applying the metric Santos used for HGO/Gastar's share last year, i.e 74c/GJ or $461mil for 3P-624 PJ.

So, (74c * 1818 PJ)/902.85mil = $1.49/sh (or $1345 mil) which clearly is a considerable amt of premium to ESG's current SP of 73.5c (or EV of $608.87 mil).

Now, STO could either buy ESG's share with $1.345b or divest that into their future exploration drilling budget.

Logic suggests why drill when u can buy.

Wonder why AGL have gone cold turkey, since spending big on acq's last year. Mayb they can line up ESG & MEL (2P:298 PJ, 3P:1538 PJ, EV: $121mil) & control the CSG play in NSW & in turn become STO's future partner. Not a bad strategy, is it.

Just my thoughts.