Well, WGO owned the other 50% and went for $440 million. The Erregulla Deep well is likely to add 25-30% in additional 2P reserves. So that adds to the valution. We are also the operator (have the whip hand), so that adds a bit too You also need to account for the fact that some of STX's 2P reserves are contracted to CSBP. Guys like Tooter will argue that the contract price is much lower than the prevailing market price, but the last announcement suggests the sales price should be close to market price. I don't see Wot's valuation of $600 million as unreasonable, especially after reserves upgrade and existing upside (given on going drilling success), and also given the MIN-Hancock transaction. Having said that, if Hancock is not interested in providing a reasonable offer and continues dragging her feet while getting her own plant up and running, then I would be open to selling to Beach/Mitsui for say $400 million. Sure it's unders, but the opportunity costs of going on like this for another year are high, in terms of not getting on with drilling out Arrino-Kadathinni and Ocean Hill. Also, it would be great to implemenent the peaker plants without relying in debt.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)