AUT (Aurora) is subject to takeover by Baytex as of this morning at a significant premium. AUT have a 28% working interest in the Sugar Loaf oil producing fields in the US and Sugar Loaf is about 1/3 of AUT's producing acreage portfolio.
AWE have a 10% working interest in Sugar Loaf. The boffins should now be able to more accurately value AWE's Sugar Loaf interest at this higher valuation point. Raises the question of whether AWE may monetise this asset whilst the iron is hot. This would simplify the AWE portfolio which would make AWE even more attractive to a predator IMO. Anyone have any ideas what 10% of Sugar Loaf is worth to AWE in a sale scenario.
Good news this morning also on the progress of Arrow-smith2 well in the Perth Basin. Another significant shareholder yesterday advised of an increased stake in AWE. Me thinks the ducks are lining up quite well for a great 2014 for AWE.Bookmark and Share
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