furious with management, page-45

Hendrous - that was a really good post.
because whilst we are all frustrated with the time taken to consumate a deal, we seem to forget just why we all thought a Petro t/o of WCL will eventuate.

on 20 Nov WCL announced the second proposal of 52c.
that announcement said ".. from a party which has conducted extensive due diligence on the Company...".

so as at 20 Nov this party has already been doing doing extensive d/d.

on 18 Oct MPO announced that the sale of its Qld CSG assets to Petro had gone unconditional, with settlement due on 1 Nov 2012.

so only about a month between MPO sale going unconditional, and the proposal made to WCL.

you can guarantee that the Chinese would not look at the WCL data for only 4 weeks, then make a proposal!
They just ain't that quick.
and WCL said they had already completed extensive d/d.

So as Hendrous is pointing out, Petro simply would not agree to an unconditional purchase of MPO assets unless they had a really firm idea of just how they will make that purchase work!
And it will NOT work without WCL.
I still reckon it is as simple as that.
So they would not stump-up $43m unless they had a firm business plan in place.

The objective in all of this for the Chinese is to get F/L up and running.
LNG Ltd stated that their Louisianna project will be based upon the results and work done for the F/L project, so clearly they inted that the F/L will be the commercial basis upon which HQC/Petro will roll out their OSMR technology worldwide.
SO F/L MUST be built.
And imho that simply must include WCL. I do not think they will get their gas from elsewhere, because why would they pay $43m for MPO assets 4 weeks before they lodge a proposal for WCL?

IF as LNG says, that they want F/L to demonstrate the commerciality and technical validity of their OSMR technology, they have stated:

"The LNG Limited plant can be commissioned on just 65 TJ/d and is capable of being economically viable on only 130 TJ/d or fifty per cent of the LNG train capacity..."

So WCL already has infrastructure in place to handle the 60tj/d - all they need is more compression facilities and the wells. They have the reserves.
One would imagine Mitsui and petro would come to some accommodation to achieve the production of the gas.

And yes, it's not a big leap to see a scenario whereby Petro buys out Shell/Arrow and uses the gas to supply a much larger F/L facility. They could even just buy the producing gas fields, or the gas.

Whilst there have been a leadership change in China, it still appears that the Chinese are hell-bent on securing long term supplies of energy. They desire security of supply.
The tie up of Petro/HQC/LNG/WCL/MPO seems to tick all the boxes.