A very solid selling effort over the past few weeks and gladly...

A very solid selling effort over the past few weeks and gladly the buyers have been ready to take them all. It will be interesting who gives in first and, one would think, a change in substantial holding notice must not be far around the corner.
Approximately four months for everyone to work out their risk profile and buy/sell.
Seems like it is a no-brainer to me.

150mmscf/day *$7.50 (approx. gas price received)*.74(approx. percentage after tax, royalties, etc)*.525 (approx. percentage of revenue SEH gets after taking up the buy-in option) *365 = $160mill USD per year = AUD200mill per year. Obviously the approx. 52.5% only relevant until Chinese partners have paid their share of investment expenditure. I would think after infrastructure costs, etc SEH may have a profit of around $100mill AUD in 2020/2021.

250mmscf/day in 2021/2022 it will be around USD340mill revenue at approx. $200mill AUD profit at which point the SEH percentage probably drops to around 37% for the next year (hard to calculate exactly due to LXG and SJB being different ownership percentages).

At a PE of around 8 (Chinese sovereign risk and PSC expiry of LXG, unless extension negotiated (we'll probably have to take a bit of a haircut to our percentage take) I would think 35c is realistic in 2020/2021 and 50c 2021/2022.