Everyone is missing the obvious question: Why is Hancock buying...

Everyone is missing the obvious question: Why is Hancock buying WGO to get a 50% non-operated interest in West Erregulla?

Any gas developed at WE needs to go through a new gas plant which no-doubt the operator STX will build next to it's project Haber site. Hancock will be tied to STX's development timeframe and facilities.They MAY be able to separaely market their equity share of gas (or sell to themselves) but Hancock is tied to the JV facilities.

Beach has a clear advantage here in that it could take gas to Beharra Springs or Waitsia gas plant which it part-owns with Mitsui.This still assumes they can get the gas away without going through Haber (sole risk development ??). This would be a serious pain for STX.

The only conclusion I can draw is that STX is the ultimate target here. If anyone buys WGO for their own mine sites (c.f. MinRes) they also need to buy STX to control the project and have enough volumes to warrant a standalone development. Haber is dead in this scenario. Gas for domestic mines also avoids the difficult conversation with the Premier about LNG export permits which is rumoured to be denied for any more Perth Basin gas.

As the old Chinese Curse goes...."may we live in interesting times".

Next bid please.