bow, with a santos-esg chaser, page-9

Nervous,

BOW accepting a slightly higher bid from Shell suggests to me that, on a 3P valuation basis (and who really understands how these companies are being valued), the STO offer may be perceived to be very generous.

BOW finds itself in a similar situation. Sure their current 2P reserves are lower at the moment, however, looking at their 3P position and the significant potential upgrades they have, suggest to me that the landscape has now changed here.

I am of the opinion the 'second' level of CSG explorers (ESG, BOW, MEL) have realised that they need the larger players in order to find a market.

If I was a BOW shareholder, I would be scratching my head thinking I was surely shafted given what ESG has been offered. And to think MEL shareholders are expecting over $4 per share based upon the ESG takeover multiple!!

So, looking at ESG, it is time to realise today the STO offer is reasonable (maybe more than reasonable). AT least you will continue to 'own' the assets through STO holding.