very interesting

Arrow Energy has just snatched up Beach Petroleum...

Now, Origin is looking for more LNG gas reserves.

Andrew Dash recently stated in the news article that he was in talks with a CSG company, also that PES was bought for 1bill, and that CNX had much greater reserves with UCG technology. Perhaps he wants 2bill? lol, story below.

Is it a coincidence that a third party LNG gas reserves report is to be released soon for CNX?

Would be a smart move for a major CSG'er to grab the best UCG technology imo. Could be utilized on all their present tenements, after CSG removed.




Origin Energy to draw on war chest

Thursday February 26, 2009, 8:06 pm


Origin Energy Ltd says it could easily spend $2 billion on a major acquisition as it plans to draw on its multi-billion-dollar warchest and is confident of a jump of at least 25 per cent in full year earnings.

The comments came after Australia's second largest power retailer said its huge coal seam gas (CSG) sale to ConocoPhillips helped boost net profit for the six months to December 31 to $6.66 billion, compared to $335 million in the previous corresponding period.

Underlying profit, excluding the effect of the ConocoPhillips transaction, rose 38.2 per cent to $276.94 million.

Origin said it expected a 20 to 25 per cent increase in underlying profit in 2008/09 due to contributions from development projects and acquisitions.

This compares to previous advice of a 30 to 40 per cent lift in underlying profit for the full-year.

Managing director Grant King said Origin was in "an extraordinary position", with $6.4 billion of cash plus undrawn debt facilities to pursue acquisition opportunities.

"We would like to continue to add resources ... be that gas or renewables or even coal if we felt the equation and the economic analysis was right.

"And we would clearly add generation and retail customers as well.

"We could spend billions of dollars - and I'm not being bold or aggressive in saying that.

"For the right opportunity, we could spend $2 billion easily."

Mr King said the company expected lower contributions from its 51.4 per cent-held Contact Energy electricity generation and retail business in New Zealand.

This had been incorporated in the guidance revision, which was triggered largely by falls in interest rates and oil prices, Mr King said.

"Those two events alone have largely driven the reduction in guidance."

Origin had expected, when it made its original forecast in October last year, that interest rates would have a positive effect on the large amount of cash it had on deposit.

Origin received an initial payment of $US5 billion ($A7.7 billion) from ConocoPhillips in October for a 50 per cent share in a liquefied natural gas (LNG) joint venture in Queensland dubbed Australia Pacific LNG (APLNG).

The joint venture proposes to develop four LNG trains, or processing plants, using CSG as feed, with production from the first 3.5 million tonne-a-year train expected by 2014.

Mr King said the joint venture expected to focus on markets in the Pacific region, where Origin supplies liquefied petroleum gas.

"As the company pursues the development of the LNG project through APLNG, we will clearly establish some channels to overseas markets," he said.

"I think in the fullness of time, it's quite conceivable that Origin's geographic view might spread perhaps into the Pacific region, being the most likely market for LNG."

Mr King said a $2.3 billion works program required to reach a final investment decision in late 2010 was underway.

"LNG technology has been selected, an initial advice statement seeking significant project status has been submitted to the Queensland Government and marketing and shipping studies are underway," Mr King said.

He said Origin decided to suspend an on-market buyback due to the poor state of capital markets.

"At the moment, there is no evidence that capital markets will be in an improved position through even 2010, so conserving the company's capital would seem to be the most prudent decision at this point in time.

"We will revisit that matter in the new financial year."

Origin declared a first half dividend of 25 cents per share, up from 12 cents per share for the previous corresponding period.

Shares in Origin were down 13 cents at $13.20.

http://au.biz.yahoo.com/090225/2/24utp.html