price strength

WCL SP is looking stronger, albeit on low turnover.

at time of writing there were only 7 sellers, for a total of 223,000, but with offer prices from 18c way out to 49c!

so few s/h are prepared to sell? WHY?

obviously investors are predicting a formal Offer?

we know:
- parties are already in data room, and have been there for some time
- gas shortage predicted for 2015 onwards
- gas prices for 2017 onwards were predicted to be in range of $6 -$$9 /gj, but now they are saying $7 - $10/gj+
- domestic gas users cannot get L/T contracts
- LNG projects still short of gas, particularly ramp-up gas
- WCL already producing (albeit small amount of gas) and close to Gladdy
- Orica deal to fund Strike is probably just the start of similar deals. WCL ideally placed to look at something similar forward gas sales agreement.
- WCL does not appear to want to do a CR, and appears to be looking at different funding options for Meridien field development
- big s/h not selling
- possibility of Petro re-entering the fray
- recent mgt change and downsizing, and re-focus on production, may be attractive to potential acquirers (because that specific hard work done)

just my view,
cheers