Ann: Full year results presentation, page-31

1982- yeh, isn't that an interesting thought?
what a powerhouse in the CB that would be if SXY were to combine with either of DLS or BPT.
did we see BPT buy some SXY shares? or did they buy DLS - cannot remember.

it is all about relativities. yep, if DLS SP strong, and SXY SP considered weak, then that's the door ajar.

But without looking at the SXY register, I recall Sentient has 16.7%, Elphinstone has about 2%, Robert Bryan has about 2.6% - I think all three are supporting the Board so any merger/T/O matters would need to listen to the views of those people.

One thing I heard on the Preso was a comment by ID re the AWE negotiations. He commented that the AWE assets in C/B would have made a terrific fit with those of SXY. So point is, he (and others) will not be alone in thinking along those lines. So mergers etc must be on the table somewhere! ---- (also after he made that comment, he said something else about it, which I missed - any pick it up?)

IMHO, it makes sense.
It's all about risk.
I always was of the view, that O&G coys farmed-out interests in permits simply to reduce the risk by spreading the risk profile, and to reduce the exploration/drilling/development costs.

But imho, the C/B is now a different paradigm.
Because these guys have pretty much mastered the ability to find the oil and gas, using 3D seismic, fraccing, completion techniques etc.\
Much of the geology is similar across the C/B - such a big area.
SXY have quoted a 67% success rate in a recent preso.

So it just looks to me that different dynamics may now be at play in the C/B O&G business.
We all may find that there is more value now in consolidating permits, to take advantage of the economies of scale, access to capital and mgt expertise etc, rather than spreading the risks of exploration. Just an example - SXY is developing its Hornet gas field to supply initial gas flows to STO? - and DLS is developing its wet gas permits. So I am wondering what sort of economies would there be in combining these developments ie infrastructure, processing the gas etc???

cheers