current proposal vs previous proposals

But Mr Hughes said the venture offers the option for a cost-effective brownfields expansion, with more drilling and additional compression.
13 Feb 2012
WCL announce proposal of 65c p/s
had $15.68m cash end Dec 2011 Qtr
had 251m shares 12/2011
had 221pj x 2P net to Wcl
so WCL valued $163m

16 Feb 2012
wcl increases 2P reserves to 258pj net

2 March 2012
LNG outed as Proposer

8 March 2012
WCL issues 101m shares at 25c
now wcl has 355m shares on issue
(ignoring cash on hand) bid worth $163m / 355m shares = 46c/s

20 Nov 2012
indic proposal of 52c ps - turns out it is Petrochina
end Sept qtr wcl had $29m cash
had 356m shares
so offer worth 365m x .52c = $185m

14 May 2013
Petro withdraws offer

So now
10 March 2014
Landbridge proposes bid at 36c
wcl has end Dec 2013 $26m cash
wcl has 445m shares
ignoring cash proposal values wcl at 445m x .36c = $160m

So why would we accept a 36c/s offer valuing WCL at just $160m when Petro offered $185m over a year ago?

why, would we accept $160m now when ;

- gas prices have gone from $6-$7 gj back then to what $8-$10+ /gj now? MH is talking $8gj at gate

- why accept $160m when WCL about to sign a company changing material GSA worth $billion+++

- why accept $160m now when WCL has 347pj x 2P and 777pj x 3P, when Petro was proposing $185m when WCL only had 258pj x 2P and 725pj x 3P?

- why accept a lower offer when there is a critical shortage of gas for LNG projects, and for domestic users?

- why accept now when WCL has expended probably 12mths plus negotiating a GSA with reportedly blue chip customers?

************************************
The company, with the support of its heavyweight Japanese partner, has an initial target to take output to ­40 terajoules a day by 2016.

Mr Hughes said the expected deal, likely to be agreed within three months, would give some flexibility over ­volume, with prices potentially around the $8 a gigajoule level which was ­typical of recent contracts.


The Australian Financial Review