Ann: STX: Strike Increases Exposure to West Erregulla, page-11

IMHO, that's just not correct.

i think most of the verbage in the STX announcement is baloney.
They do not have 54% control - they do have an supposed "economic" interest in 54% ---> but that is pretty much rubbish IMHO.

Because they only actually have a 50% interest and 50% control (plus Operatorship) in WE !!
Thats a fact.

By buying 8% of WGO, they gain no more control of WE -- zero increase.
Because the acquisition of that 8% simply does not give them any control over WGO, and WGO's decisionmaking regarding WE.
To get that control, they need to control the Board of WGO.

They don't have a board seat, and are unlikely to get one. 8% does not justify a board seat.
They are unlikely to be invited onto the board, because of potential conflicts of interest.
All sorts of potential for conflicts of interest.
eg-- both companies might be targetting same buyers of gas??
good example was GWC issues - each board had a different interpretation, and basis re boards fiduciary duty re interpretation of that GWC issue.

the claim of 54% economic interest is simply a "filter-down" number. ie 8% of 50% = 54%.
a useless number, because they get no more control.
they also get no real further economic interest - because any economic benefit is simply at the pleasure of the WGO board decisions at the time. Any economic benefit flows to WGO first, then the board decides whether to pass on any economic benefit to shareholders of WGO.

All just IMHO.