Thanks for laying out some of the possibilities in the deal....

Thanks for laying out some of the possibilities in the deal. Helps in trying to understand where it could go.

I dont think WCL have an idea of the final acquisition costs or how it will be financed. The JV aspect will both reduce capital expenditure as well as increase confidence in the field development if BG were to be involved. I know I would view WCL in a very different light if this were the case.

Moura is only a stone throw in acreage location to Gladstone. 186kn from Moura to Gladdy on the Dawson highway. This is the closest sizeable acreage to gladstone - and it currently has gas pipelines running right over the top of it.

My dillution comment was more in the light that, if you want to avoid it, you are going to have to cough up.

I think there is definitely a case to sell. Monetising these assets may very well suit each of those companies plans as it looks as though it will take a fair whack of time to get payback on the operation.

You need to follow this link to gain an appreciation for the costs involved in such a field development as well as the (slow) rates of return. For this reason I think the metrics make some sense. Note the comments towards the bottom on MPOs aim for field development with partners - clearly they have changed their focus now - lets see if MPO also switches track.
http://www.molopo.com.au/qld.html

MPO have demonstrated that they are aggressively selling down their postions in several fields(MEL sale in CM basin, Fortune sale in Lulin) and focus towards the recently acquired Oil plays in Bakken/Swordfish and Shale Gas in East Canada.

There is no link between Stephen and Nathan Mitchell is there? I checked this out before and couldnt find an obvious one. Any comments?


SF