Cost of gas extraction and difficulties in accessing parts of PEL 285???
The gas contents and permeabilities did vary considerably which was reflected in the range of prices that AGL paid. The fact that AGL also indicated that they were targetting significant resource upgrades from it also adds to the argument it was under valued.
But have you also considered that AJL has a better plan for growth; so rather than wait and get top dollar for the 285 asset, a significant injection of liquidity will give them what they need to accelerate other plans?
Dont forget that their 15% stake in ATP651 is still being considered for sale as well.
Cheers,
SF
AJL Price at posting:
$4.10 Sentiment: Buy Disclosure: Held
