Depends on how much value there is in any tax offset that comes...

Depends on how much value there is in any tax offset that comes with buying the company. If you could buy something for $5 that reduced your tax by $10 then its worth it, and if there is other bonuses with the thing...then it is more than worth it.

So how much is BKP worth to another company if it had no interests in anything, just some money in the bank to pay its bills and salary?

I am sure there are people here who could advise on this, since I no very little. I can imagine that these type of companies that have massive capital outlays before generating an income if any get decent tax offset for their expenditure when they start to make profits.

I mean a company take over... $25m for accumulated losses of $48m plus all the other goodies (if you are a big company able to participate if you want). Not that this is what we want, we want BKP to make money itself...however if you are backed into a corner with less and less to lose...some risk taking is in order.


Now this is where PFC should have been a supporter of BKP if they had thought a little bit more. They must have known that the costs were beyond BKP and thus increased the liklihood of Statoil buying out BKP or another major player...which in the end marginalises PFC....as Statoil and the other major can raise the stakes and delay good outcomes...until they force PFC into a corner.

If they do this to BKP then if BKP sells out to a major .. PFC will be next...you can bet on it. So it would have been to PFC's advantage to try and get a better deal for BKP.
Though at the moment PFC is feeling fairly safe with its deal.

So the options for BKP are to sell itself out altogether, sell off part for some cash to concentrate elsewhere.

But I think an interesting thing to do would be for them to meet with other majors to see what variations can be created. Im no oil man...but I gather BKP management must be strategising something.

ALSO I notice a story in The Australian as follows...


'MINUSCULE oil and gas explorer Baraka Energy and Resources will take on the might of Norwegian energy giant Statoil after the pair fell out over a proposed exploration program in the Northern Territory.

Baraka -- with a market capitalisation of just $8.9 million -- will head into arbitration with Statoil -- market cap of 466.8 billion Norwegian krone ($84.6bn) -- after Baraka found Statoil's planned exploration efforts at their Georgina Basin joint venture would far exceed the junior's funding capacity.'

Now I think maybe BKP do have a case to put against Statoil. It would be grossly unfair to any junior partner when a big money player can come along and bankrupt them, put them out of business simply by putting up an artificial bid they know will knock them out. Just like being at a poker table when three quareters the way through the bidding one play tries to up the bid by a million, knowing everyone will have to fold, and they take the pot.

So this will be interesting also.

BKP should out there being busy.