MPO 0.00% 14.0¢ molopo energy limited

how about wcl + mpo qld interests?

  1. 8,541 Posts.
    lightbulb Created with Sketch. 2813
    I posted this thread on WCL site.
    It would make sense if 2+2 = 5 (or more).
    It could add value to the Mungi/Dawson assets (economies/efficiencies), plus add value to all the MPO Qld Csg assets (bigger/more meaningful scale), plus add value to MPO (better recognise value of MPO parts).

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    I was reading both MPO and WCL Qtly and looking at the location maps.
    The Mungi field is adjacent to the Dawson field, and the Dawson pipeline goes thru the Mungi field.
    Both fileds are producing gas, and i think both have contracts witht he same customer Dawson Sales P/L(Anglo & Mitsui).
    MPO is developing a power station near Mungi.
    WCL if it does get to purch the Anglo/Mitsui interests in the Dawson field, will own the field plus the infrastructure.
    At first blush it seems logical that there must be economies of merging these interests.
    WCL could contribute gas and reserves from Paranui, plus the Dawson fields.
    The combined assest could better feed gas sales contracts, provide greater supplies of gas to the power station, economies of scale in explor & dev of permits etc.
    Without a doubt, a combination of MPO Qld CSG interests and WCL CSG interests would create a much bigger and valuable entity.
    Size matters in CSG.
    A combination of these assets would be far more appealling to a big player.
    A combined entity would allow MPO access to the interests of QGC/BG ( an association worthwhile IMHO).
    The combined entity would have Mungi field, Dawson fields, paranui, Tilbrrok, Mt ST Martins, Gallilee Basin, Harcourt, Timmy prospects etc.
    DON'T WORRY ABOUT VALUATIONS -BECAUSE WE COULD ARGUE ALL DAY.

    MPO has valuable assets in Mungi, South Africa and Canada.
    To accomplish a merger, MPO could sell its Qld CSG assets to WCL in return for WCL shares.
    These WCL shares held by MPO could then be distributed prorata to the MPO s/h.
    They still retain equity in their old Qld assets- but in a more efficient vehicle.
    Thos would allow MPO to concentrate on Canada and South Africa assets.

    what do you think????

    cheers



 
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