If we go back to the Mitsui deal that Tui and jctrout mentioned, without adjusting for the appreciation in gas prices the equivalent T/O price would be 10.5cps right now. The only significant price impediment at the equivalent time is that there was more data to support the Mitsui sale.
With an independent certification of the resource as we know it today should see an sp of 12-15cps under takeover conditions.
About the only time the sp is right is under a takeover when the finance boys have spreadsheeted themselves to the death. For mature industries like gas/oil the market cap tends to be well behind its saleable value other than at takeover time.
I would like to see Norwest add as much value as possible in as short a timeframe as reasonably possible such that we get a return that recognizes the future value of the other leads and increasing gas prices/demand.Roll on the independent certification assessment(even if only partial at this stage), the appraisal wells, seismic surveys and their analysis.
NWE Price at posting:
3.8¢ Sentiment: Buy Disclosure: Held
