sgl v qgc

Very interesting to compare just how much gas reserves the respective companies may have. the figures i have used are from both companies websites.

To date, QGC's appraisal efforts have been directed towards proving gas reserves at its Berwyndale South and Argyle gas fields. QGC's share of Proved and Probable (2P) gas reserves amounts to 422 PJ (410 bcf), with 2,464 PJ (2.4 Trillion cubic feet) of 3P reserves.

SGL estimates that there are around 63 Trillion cubic feet of gas-in-place within its Sydney Basin acreage.

Recovery factors of 90% have been seen in some high permeability gas fields in the US. For planning purposes, however, Sydney Gas has assumed a conservative gas recovery rate of 63%, which was provided by Cawley Gillespie in their Reserves Report of 2004. Even using these assumed recovery factors, potential gas recovery is significant and ranges from 19 TCF to 32 TCF, provided that the geological model is consistent across the Sydney Basin.

So even taking into account the 50% jv with AGL it appears a safe bet that SGL have multiples more gas than QGC although this is not based on proven reserves.

So why is QGC trading at a multiple of 7 times SGL? Of course the Santos offer has pushed QGC to record levels but why wouldnt SGL appear more attractive to a predator?