Bottom of the Barrel Valuation, page-144

It is my speculation that CE will only possibly entertain the idea of taking a stab at STX if its price remains low. As the market is pricing in virtually zero expectation of explorations and low valuation of our gas reserves, it will not take much to move the STX again once sentiment turns. There are many things that could turn it in the near future (SE possible recovery, W7, ED1 and SWE1 drilling success, policy change).

At 21c, the market is valuing our gas reserve below the bids that CE and Gina put forward for WGO. Below is what I speculated on how Macca derived at their 22c revised valuation...


So if they were willing to pay over 2/GJ for WGO when spot price was around 5-6, wouldn't STX look enticing to them at 1/GJ?

If and when STX price does recover, I just don't think CE would be interested. As such, if they are going to move on STX, one would think it would be soon. If not, then it's likely they aren't interested at all.

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