Extract from The Bull newsletter this morning. The Bull is a free subscription newsletter.
Regards..............
P"aul Clarke, of State One Stockbroking, says what mining suitors examine are the quality of the target company?s projects, the company?s reserves, their proximity to infrastructure, balance sheet status, whether it?s an explorer or producer, its prospects, the outlook for commodities and price. If enough satisfy the suitor?s criteria, it may launch a takeover bid. Oil and gas explorer and producer AWE Limited recently reported a full-year loss of $117.6 million, but significant one-off items impacted the result. Looking forward, Clarke says the company has strong oil and gas reserves, and offers six main producing assets in Victoria, Western Australia, New Zealand and the US state of Texas amid exploration interests. ?AWE?s gas assets have production lives of around 20 years, making the stock attractive to potential suitors,? he says. ?Strong potential in shale gas complements existing quality assets. The current languishing share price could flush out predators looking to enter the Australian shale gas space at an early stage.?
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