what if..., page-20

db76,

I hear where you are coming from.

A few things I'd like to discuss with you, et all (if the others are interested that is), is the fact that 35% of the total tenements in the Gunnedah basin, amounts to a large slice of land.
And that means that STO holds 15,750 square kilometres of that land. That is something not to be sneezed at, considering the average size of tenements around. Besides, they do also own 19.9999% of ESG's shares, which IMHO it represents a very strong stranglehold in the company.

Contrary to what the BR's write/think about STO increasing their holdings in ESG because they know how good the tenements are, my opinion is, (and that may not mean much), that STO increased that percentage holdings for the simple purpose of retaining that stranglehold. In a few words, we are at their mercy because, putting my past experiences I have gained in the market over the years, chances that another company would make a move on ESG, without STO allowing it first, are very minimal indeed.

As for ESG then going alone, that could be on the card. But, why does not many posters think that maybe, and only maybe, that is what STO would want them to do.??
And that is, wait till all the hard yard has been made, without much risk involved with STO, and then make the decision to take them out, at their price???

After all that is what happened to AOE. Shell waited and waited till they did everything, drillings, pipelines, power stations etc. without spending much money, and then came in for the kill.
And most importantly, whos' money was AOE spending while they were going along with their own business of expanding operations???
AOE'S SHAREHOLDER'S MONEY OF COURSE. NOT SHELL'S.

Now, as for STO borrwing money from overseas, I do agree with you that they should have hedgings ion place against that loaned money. Many companies went belly up when famous Whitlam devalued the dollar that time, when Australian Companies went bankrupt after finding themselves with a debt twice as much as what they previously engaged themselves in, plus all the increase Interests they had to face with the devalued dollar. The same applied when, from memory, Keeting was in with the rates of interests at the time reaching about 20%.

Now finally my friend, as for your comments I can prognosticate as much as the others can but I constrain myself, as you do, to the evidence available..

There is an couple old saying that I'd like to point out to you, without offence that is, and they goe along like this;

1) You can lead a horse to water, but you can't make him drink it, and
2) Give them enough rope and they will hang themselves.

Some story happened with a little copper mine company, lol.

Cheers all,

Buddy

PS.... You could see what happened with today's MEL's sp, after the announcement about the CSG that came out, FREE FLOW AND.....WITHOUT ANY WATER EITHER.
Without water, that is the main word.

Cheers