is conoco targeting takeover of bru ?, page-45

There is another interesting point in today's anns. I wanted to post my opinions on this old thread because I thought that interesting point might be very much related with the subject of this thread.

See Eric Streitberg's comments on today’s anns.;

Eric sounds a bit of anxious here! Why?

The main anxious point on his comments is this; He thinks that the gas resources of the Canning Superbasin is not properly recognised both by the shareholders and the government in the context of both Buru, and of the energy landscape of Western Australia.

He tells this to both by SHAREHOLDERS and GOVERNMENT!

And he says; it is NOT PROPERLY RECOGNISED!

He also says; "This independent validation of the accumulation only reinforces our views, and those of other parties, that the Superbasin has the potential, on the basis of the BCGA alone, to hold gas quantities equal to a significant part of the reserves of the offshore Western Australian gas industry."

Who are other parties?
Are they super major O&G companies like Conoco, ExxonMobil, etc?

He says that OTHER PARTIES ALSO HAVE REINFORCED VIEWS that Superbasin has the potential to hold gas quantities EQUAL TO NEARLY ALL OFFSHORE WA BASINS HAVE.

He means that other parties have already recognised this potential IMO.

What happens when super majors recognises the value but not the shareholders and the government?

Does he think that if Buru receives a takeover bid now it might be sold at very cheap price because the tired and torn out shareholders would sell to a takeover bid which might be turned to a hostile takeover bid later on?

For example, if they put a takeover bid for $4, what would happen?

Can we be sure that people would not sell at all in this bad market? (I hope not but see Arrow Energy's chart above as a reference)

As a result;
Is Eric anxious for a takeover bid for Buru when the company’s resources are not recognised properly, because he will not be getting the real value?


Can it be this way; The real potential of Canning Superbasin is not properly recognised, because it was not properly explained?

I think Eric has a fault in this situation. Because he didn't give any credit to other players' potential in the Canning basin before, maybe he wanted to get all the attention on his own play! Or he had other agenda on the other plays. I don't know.

Now he rocognises the other players by saying; "There is also the possibility that this accumulation is both basin centered and basin wide,.."

Thanks to Eric. He means that REY has a big potential, NSE has a potential on their Gregory Basin tenements, and other players as well.

Now I am not worrying about this because this is in the past. What BRU shareholders should do is now, is to sit and do more research about the energy plays like Buru and try to estimate the value of company.

But it will be hard as the total of prospective area is huge in Canning Basin for ordinary people. Howe ever we don't need to be very smart to understand the value of this prospectivity. There are couple of hundred billions dollars of oil and gas accumulation in this super-basin. That's for sure. So, how to valuate the players of this basin is not easy for now. You just need to hold and wait to see that.

And the best thing to do is "say no to any takeover offer" if it emerges for Buru.

I believe Buru's, NSE's and REY's value is not known yet. It might be 10s of multiplies of what it is today. We need to drill more and more as we have money.

I think that this will most probably be much bigger than CSG bonanza happened in QLD's Bowen and Surat basins. I think only the Laurel formation in Fitzroy Trough and Gregory Trough will be equal to QLD's CSG potential. It is only matter of time to be bigger, we will see it when NSE-Conoco drilled and got the results from the Kidson sub-basin. If we get good results, Canning will have at least 50% more energy extraction capacity than QLD."