gap, page-7

Lots of ranting and raving, db, as per usual. I am happy to answer your question, db. Are you happy to answer mine? Here they are again, in case you missed them:

(A) What is YOUR price target for ESG? Do you have one?
(B) If ESG hits your price target, will you sell and move on, or will you then shift your price target?
(C) Would you prefer an offer of a similar price from Origin, and if so, why? Is it related to your employment?


Now, to answer your question db (and I think I have covered this previously, but nevertheless:

There is a third party. There has always been a third party, even prior to ESG and HGO and Santos allowing for the Santos buy into ESG. And that third party will act rather than let ESG go for a song. ESG agreeing to this SoA forces third parties into an auction situation. Which is exactly what ESG wanted all along.

- the SoA puts a base under the share price.
- The SoA makes the whole process go longer - this will enable Tintsfield to get up to commercial flow rates and hence book reserves. (consider this - why would Santos opt for the long drawn out process of the SoA, rather than the quicker option of a straight forward agreed bid? Does this look like Santos wants this wrapped up quickly, or does it allow for other parties to act?)
- The SoA puts a hard deadline, before which other interested parties, (yes, like your mates at Origin), have to act. No idle MOUs as threats, this is a real deadline.
- The SoA even shakes out retail shareholders. An added bonus for all concerned.

Santos always appeared like the most obvious threat. Just like people assumed that you, db, worked for Santos or their agents. But as we turn that perspective around and consider that there are other parties who want ESG more than Santos does, then it changes the way we view the evidence.

And, despite ESG and Santos going through the motions (as they must), ESG are not convincing that this is all they want for their company.

Ask yourself - if ESG is so committed to this deal, why bother polling their own shareholders? Are ESG going to use these NO VOTE survey results as an 'out', in the event that Origin or BG doesn't intervene before the deadline? Who will blink first..?

But I agree with you, db - a cash offer from your mates at Origin is preferable to Santos scrip. (but later rather than sooner would be great, for the reasons previously discussed). :)

This has a long way to run yet.

Yaq