new shareholder, page-6

We all hoped STO would takeover ESG for its 65% share but STO comments to date have been about their own 35% Narrabri CSG JV share PLUS their 20.97% of ESGs 65% = 48.6% effective JV gas share

We know that STO cant control their part of ESGs share even if they are a major shareholder of ESG but they can influence where it goes by various means , such as an offer for it to join any flows northwards to GLNG

STO has its own Gunnedah area and if that appraises up quite well they could justify a pipe north and invite ESG to join in and sell some gas into it

STO has been in the JV and a ESG holder since July 2009 and it has made no move on ESG.

The GLNG JV is a more likely acquirer of ESG for reasons discussed before.

When ESG started up the LNGN adventure we all thought STO would strike - but nothing ! - STO is supporting the Field development feasibility study but is leaving LNGN to ESG as the sole risk participant.

At this stage if STO is thinking about sending gas north their rationale seems to be:-

1. Our own Gunnedah tenements may have significant gas in them - still in appraisal with no bookings yet !
2. Our Narrabri 35% JV gas is already significant
3. ESG might want to sell us some of their gas to go north even if they commit to 1mtpa out of LNGN
4. If you add 1+2+3 above you may have enough to backup GLNG trains 1,2 and for Train 3 or more ,

Which could tempt GLNG to bid for ESG and the STO tenements to be added to the GLNG rseource.

A triple play sale for STO to GLNG - its 35% JV stake + ESG shares + STO own Gunnedah tenements

The takeover scenarios are a constant source of amusement here


Cheers