The 3P 50c/GJ is a back calculation like 20c/GJ is one for the BOW takeover
The only firm 50c/GJ being paid is by TRU Energy to whom STO is selling 20% of 2797PJ 3P for $284M
STO is buying TRUs ESG shares but only after selling that Kooragang Island land
STO has a positive cash inflow in this deal
Not bad outcome for the Gnomes
STO will not do anything unless it absolutely has to which is why the Other-Bidders are so important
If one of them say ORG put a cash bid of 90cps on the table the moment of truth would be there for Mr Knox. He has not been challenged yet. What would he do ?
The possible Other-Bidders have been culled: - BG seems happy with DLS shale gas potential - Shell has got BOW
ORG is left and a lot of commentators are concerned that ORG may not be comfortable being mainly an energy retailer. ORG and BG could do a deal to relieve ORG of its stress.
If not ORG could see ESG like STO does and we could have an auction -- STO vs ORG the battle of the cruiserweights with ORG ~50% heavier
Cheers
ESG Price at posting:
77.0¢ Sentiment: Hold Disclosure: Held
