one way to look at the bg sale, page-13

Scarabeo

Just to follow on from my last post:

Have you thought about the other alternative? They were saying last year that they might sell down their interests in other blocks (rather than the central JV blocks). Yes - I suspect that the offer from BOG was too good to pass up and that there may have benn no buyers at a sufficiently good price for their equity in the other blocks.

Whether this turns out to be a good deal remains to be seen and that depends on what they find in Blocks 1, 7 and 8 and in Gabon and Guyane. Obviously the "giant" prospect Matamata in Guyane has caught their attention and they did not want to give up this or other interests. Ted has shown that he is a canny operator - witness acquiring a % of ARC before discoveries and subsequent sale at a profit, farming out the costs of Thon before it turned out a duster. You have to remember that management has much more information than we do about the data they have, the seismics, the deals being weighed up, the size of prospects in other blocks and likelihood of success there and in the central JV blocks.

Let's wait and see what next announced - a big farmin deal with a major in Guyane perhaps???

Cheers

H