market value vs potential value of esg, page-2

Ezi,

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