WARREGO ENERGY LIMITED (ASX:WGO) - Ann: Receipt of non-binding indicative proposal - Beach Energy, 64729660, page-46 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

Originally posted by alexei ii ↑

buddy,
Your point about non operated position is spot on. So by inference, the reason Beach want wgo is to provide a stepping stone to then go after stx.

They are putting the heat on stx and wgo by saying the offer will be unconditional on Monday. This puts pressure on both wgo and stx. wgo to decide whether to accept/recommend and stx, to decide whether to improve the terms. It also tells everyone that Beach can simply splash cash at whim. But remember, theyre not dumbasses. They will only give you $1 if they can make $5.

Beach can see there is still lots more gas to be found in the stx/wgo permit and what gas has been found is massively discounted in the SP of stx and wgo. Even with gas at $6/GJ 20cps is a steal....Consider however the notion of bpt feeding the gas into their govt sanctioned LNG gravy train at $40/GJ?

As a wgo SH...id go with the stx share offer, as it means I still have exposure to upside for what is a grossly undervalued asset. And that asset is similarly undervalued in both stx's and wgo's current SP. So you are no worse off, and you still have a seat on the train. Thats the key here.

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"As a wgo SH...id go with the stx share offer, as it means I still have exposure to upside for what is a grossly undervalued asset. And that asset is similarly undervalued in both stx's and wgo's current SP. So you are no worse off, and you still have a seat on the train. Thats the key here."

I have the same view but I am hesitant as it is clear that the stx share price has been kept low for a while (given the progress stx has made with very little movement in share price even taking into account capital raises). If wgo merge with stx (or if bpt takes over wgo and wgo shareholders buy stx to have access to Pb as suggested by auto) then whoever is trying to keep the price low will likely keep doing the same with the new merged stx until they make a move and buy stx. I think stx should have waited for epa approvals and fid as this would have been a price catalyst and then make an offer as both share prices would have hopefully been higher. BPT if they wanted both wgo and stx would then have to pay more.