stand alone or buyout, page-3

LiverpoolOne,

How long is a piece of string?

Like DC-10's Open Briefing, where he says ESG have numerous options, and he will seek the one that provides the best outcome for shareholders.

Like all these things, most shareholders can be bought... for a price.

DC-10 has already said publically that ESG was worth $2.4 billion based on now hopelessly outdated reserve figures. So, we know that DC still thinks that high metrics (esp. for industry best practice costs) still apply. So, have a stab at our current 2P and 3P, then apply similar metrics - that is ESG's expectation.

But, I will not be engaging in publicly saying "I will sell for x".

My general feeling is that the market cannot yet grasp exactly how valuable ESG is at this time. As such, time and development are likely to unlock for more valuable than a takeover in the short term. Sure, if it is contested then the price could be pushed up to tempting levels. But the reason M&A activity is so attractive for buyers in the current market is that equities and assets are still underpriced.

And so as a seller (or more correctly, a NON-seller), I would prefer us to grow over the next few years, and let the value be unlocked.

WHY SELL IN A SHARE-MARKET TROUGH?

- In two years, the market will probably be higher than current levels
- We will probably have a price on carbon
- The QLD projects will all have committed to FIDs
- Our own NLNG project will be well advanced, with a large equity partner on board (this will happen soon anyway), sources of capital available, approvals in place etc. And the market will see that NLNG will rank along side the QLD projects in its own right.

Yeah, a takeover bid will tempt a few smaller, impatient and battle-weary holders. But you can only sell a resource like ESG's once in your lifetime. And DC will not be giving it a way for a few sheqels and shiny trinkets.

I am in for the long haul.

"...from my dead, cold hands.."

Yaq