what if..., page-18

db76,

Well said.

IMHO, if STO asked for those amounts of wells, they would have had a motive for doing so. I give D. Knox a little more credit than what many people think here. As to whether he envisaged to use their own wells to the maximum instead of drilling for more, it is anyone's guess. As to whether or not he intend to do some Takeovers to supply what they need, again, it is anyone's guess. All I know, although I do not own any STO shares, that he would have to be a lot smarter than what people are giving him credit for.

IMHO, STO has the holdings (in shares value), and percentage of acreage (in tenements), in ESG simply as a backstop and a security just in case he will need that extra gas necessary for the expansion to the third train in Gladstone.

Besides, if he was to take someone over why wouldn't they look at MEL instead with all the gas they have in reserves, both Conventional and CSG, while they have very very little water problems, and mainly with such a small MC.?? Even if they were to pay 100% premium on their current sp, that would not amount to huge dollars, to the likes of ESG. Besides, the advantages of using Conventional gas as required which can be supplied immeditaley on demand, has many advantages over CSG which has to be dewatered first and/or stored as a backup.

Now as for BPT, you hit the nail smack centre on the head. As you said it is more like a good minestrone than a real company. But IMHO the reasons that it is like that, it is because of the Management they have, and that it is the most frustrating O & G shares ever. Those people, IMHO, they couldn't run a chook raffle in a crowded pub.
But, that does not mean that with different Management on Board it would not be a good company to own. They have about $200 million dollars in cash, no debts, and they do produce and have good reserves of oil. That would, IMHO suit STO very well considering that they are in the same lines of work and besides, STO already have their finger in the pie within the Cooper Basin.
On top of that, they do also own good gas reserves which it is obvious now that STO is after.

Now, IMHO and without trying to bash ESG at all, if you were to do a T/O would you go for BPT with all the cash etc. at say even at a $1 per share, or would you go for ESG at say, even at the lowest figures that US DOWNRAMPERS suggested at $1.50 per share???
Now add up what you would pay for each one of these two companies, and see what would give you the better value for money.

Besides, with what they would have to pay for ESG, they could even get both BPT and MEL at the same time, and for the same amount of money. A win win for STO I would think. They would end up with both oil and gas (Conventional and CSG that is), plus all the cash that BPT has on hand.

This is not downramping of ESG because there is a place for everything, and ESG's time will come. It is simply the way I see it. Besides, I am human like anyone else, and I made mistakes myself before. I am the first to admit that, not like some of the BR's here.

Cheers,

Buddy