New bidder enters AWE race, page-57

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tui

6,124 Posts.

1513

12/12/17

13:36

Post #: 29567582
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Originally posted by jake0002 ↑

The newspapers have been commenting for months that Waitsia is a very significant discovery - indeed AWE I think say that it the biggest onshore discovery for decades. That's says to me it is a "prize".
BPT could do another Rights Issue, underwritten again by Seven, and maybe others - gee the ir SP is strong enough - if the acquisition makes good financial and strategic sense, then a R/I should be supported. If much of acquisition is funded by equity, then banks won't have a problem.
Re Seven and dilution, why couldn't Seven stump up cash in some form as part of a bid?
Why couldn' t BPT and Seven do a joint bid - that concept has been done before.
AWE say they are currently in negotiations for Gas sales contracts.
what about a cash bid from Seven??
that would solve BPT's problems re operating partners.
Seven has O&G itself when it bought Nexus.
Seven has "Cash balance of $172m and available undrawn borrowing facilities of $810m as at 30 June 2017"

anyway, we have not heard a peep out of Beach, given that it affects their J/V?

if the prize is significant enough, then those entities have the muscle to make it happen.
if it doesn't make sense then it won't happen.
But 80c won't buy it. Certainly not a MIN scrip bid at 80c.

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Hi Jake,
I would expect that BPT are working flat out on this . They certainly don't want a Chinese partner and why share a huge Waitsia prize with MIN. The Perth Basin has been smoldering for a while. It is one of the 10 best CH4 basins in the world and finally some people are waking up to it. Waitsia's production is set to soar. If I were BPT I would want the lot and then some more of this prolific basin.

MIN has already got its hooks into EP368 which is next door to Waitsia and are due to drill with partner NWE next year. It won't be giving upon on AWE easily. An intriguing chess game which might finally reward a few long term Perth Basin holders in a number of companys..

I would expect a BPT offer significantly north of 80 cents. Only guessing
Best to you and family for Christmas and New Year

AWE Price at posting: 81.8¢ Sentiment: Buy Disclosure: Not Held
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