Monsters, many thanks. Your post provides evidence that this...

Monsters, many thanks.

Your post provides evidence that this deal, as is, was never expected to be the end. My working through the logic of the inadequacy of the merger deal is part of getting to that truth - that this 'deal' is not the end deal.

As per Monsters post, ESG know they have a reserves upgrade coming on the basis of the Bohena and Namoi seams and the extensive 2010 coreholes - they have said so to the ASX; ESG also know that they can raise their 3P as a result of greater commercial certainty (and indeed as a direct result of an LNG major making an agreement with them; and ESG know that others will intervene.

If ESG were to prove an export market, they needed an agreement that can be shown to NSAI, demonstrating that market is there. Not a mouldy MOU, not a bid, an AGREEMENT. (Even if that agreement convinces some holders to sell and give up).

(1) Santos say they want to use the gas for GLNG
(2) Santos and ESG draw up a merger agreement to acquire the gas for use in GLNG
(3) NSAI can upgrade ESG and Santos' reserves because there is an LNG market for their gas.

So why did ESG apparently agree with this merger agreement? For the reserves implications of having that agreement.

Monsters, thanks again. This is the great value of HC. Lots of input, from a variety of perspectives. And there is always someone who can re-point you to a piece of evidence forgotten. Through this process, the truth comes out.

(I will sit back, be a little quieter, and let events such as the reserves upgrade unfold now).

Yaq