note not a peep from aoe or pes & t/h remains, page-5

I do not believe AOE or Shell will sell out just for the cash, they have a strategic holding in a key part of the great game for QLD csm.

At worst case for AOE/Shell, a BG controlled PES will have to sell the gas at an arms length price. If it's going to cheap AOE/Shell will be able to offer more, and the directors/management of PES would have a fudiciary duty to accept. Presumably contracts will be structured to give BG the edge. Shell won't like not getting the downstream benefits as they are into LNG marketing etc. AOE shouldn't care a lot, as their gas is getting sold, albeit via BG rather than Shell or LNGI/Golmar.

The only thing AOE will be missing is most of the other 80%, say of the other 50% (after selling down at least 30% of PEs permits to Shell - which I assume was the game plan).

AOE may yet get a pretty decent second prize. My main concern is that if the up their offer Shell comes strongly to the party.

EL