While we wait for the Group Huddle to break between AOE-Shell, another development that could make news in the coming days is that, Beach Petroleum annc'd in their half-yearly this morning, that they are looking to sell off their 40% stake in Tipton West.
AOE & Shell already have 42:18% stake in Tipton.
Beach have mentioned openly in their ann'mnt that they r looking selling off their CSG assets. They had acquired Tipton for $35m long back & given the recent transactions in the CSG sector, IMO they could expect a price between 0.30c-$1/GJ for their share, i.e, $335-$1.115b
Recently, they've ann'cd a reserve upgrade of 2P-467 PJ, 3P-1115 PJ.b
So AOE might not want to loose out this 40% stake in Tipton to BG/QGC alliance & if the PES deal doesnot go ahead then they could well b looking at consolidating this asset, IMO. We saw what BG did with that failed Origin bid, when it went on an acquisition spree of all mid tier operators. So mayb AOE could just take a leaf out of BG's book after the PES saga is over, there are more imminent issues lurking around the corner.
cheers
AOE Price at posting:
$2.46 Sentiment: None Disclosure: Not Held
