only 3,419,045 more shares to blocking stage, page-7

This is Mr Lincoln Augustus, first second cousin of Holymagiman.

Tea time on Friday down here in Jamaica, and we are having scones and hot tea! And a bit of time to respond to our dear friends with a little bit of our uneducated ramblings.

My dear Mr Seamfiend and Mr Alh, these are just our simplistic ruminations, and you have to see it as only being the thoughts of simple village people with little financial ability. We are however very proud that we have a large holding of 101 and a quarter shares in this wonderful company.

We think that under a takeover bid, the holders of at least 90 per cent of shares must take positive action to accept the bid before the outstanding minorities can be compulsorily acquired.

So if LNG holds 10 percent, the company cannot be 100 percent compulsorily taken over and delisted by any other company unless CNPC is agreeable....that is our understanding.

Of course the strength of this 10 percent also depends on the money behind the 10 percent holding. If Jamaica Numba One Holding Company held those ten percent, why, we would possibly sell out real easy if we were approached after a night out on the Numba Ones and Red Stripes.

CNPC might be slightly different and we think that their 10 percent holding would be a stronger deterrent to another predator than, say, a 19.9 percent holding by Santos.

Incidentally, a 20 percent or higher holding, unless it has been acquired by the Creep Provision, is the point where a company is required to make a formal takeover bid.

The 20 per cent rule means a person cannot normally acquire 20 per cent or more of a company without making a formal takeover bid.

A Scheme of Arrangement is a slightly different kettle of fish, because a takeover under a Scheme will require the majority of the individual shareholders present at the SOA meeting (in person or by proxy) to vote for the Scheme, and then 75 percent of the shareholders (by value of shares held) have to vote in agreement.

So we think that a takeover under a Scheme would be a bit of a hard thing in the case of Metgasco.

So that only leaves three other options, all of which we are very comfortable with.

Option A: No takeover happens, and CNPC helps Metgasco develop and utilise its full potential in a time of rising and rising gas prices, resulting in the continuing rise of Metgasco share price, Metgasco entering the ASX 100 and Metgasco paying dividends.

This is a bit longer term than some Flash Harrys would like, but this is what investing is all about. If you are not sure what we mean, take a look at CBA and WPL and their share price performance over the last 30 years.

Gosh, the family will be an average age of 128 years old in 30 years time, and the family hopes we get a card or two from the Queen that we can put on the fireplace (which we actually don't have here in Jamaica, as it is rather hot, but that is another thing all together).

Option B : CNPC does a full takeover bid and runs tha share price up, and has to pay a bit more to get the remaining 10 percent shareholders dislodged

Option C: another party comes along and throws their hat into the ring. Now, this would be very interesting, because it would have to be a very big hat into a very big ring because the Chinese we have met in our travels appear to have rather big heads and therefore wear rather large hats themselves.

But it would have to be someone very big, so that rules out the Jamaica Numba One Holding Company for the moment.....just for the moment, mind you, but those Chinesemen better be watching their backs real closely.

And now we must run and prepare for the dinner.

Blessing of the Lord
MLA