Yes QGC and AOE did deals a while back but they were as part of alliances and included assets sales. We are hoping that ESG is not at that stage yet .... although if it were a JV deal with say STO or AGL to develop LNG in Newcastle I won't be crying in my beer (but I reckon this sort of deal is 6 months or more off)! Here's part of an announcement from Feb 2008 from QGC for example that shows what these deals generally entail:
"Queensland Gas Company (QGC) and BG Group (BG) have agreed to establish an alliance to cooperate in the development of a major LNG plant, utilising QGC’s coal seam gas as feedstock.
BG will acquire a 20 per cent interest in QGC’s Surat Basin coal seam gas acreage in southern Queensland and, when project targets are met, BG will acquire a further 10 per cent of the acreage for a total outlay of about $600 million.
BG will also acquire a 9.9 per cent stake in QGC via a further issue of shares."
The comment i would make on this announcement from QGC is that BG acquired 9.9% .... then went on to take over QGC. This is very likley what will happen when ESG proves up enough reserves to supply a major "global initiative"....they will need an alliance with a major and will then be vulnerbable. If the price is right once again i won't be crying in my beer!
H
ESG Price at posting:
72.0¢ Sentiment: LT Buy Disclosure: Held
