BG have a contract alright. A seriously huge contract to supply the new Singapore LNG supply hub. And apart from having picked up QGC they are still in a serious pickle to get enough CSG to satisfy their contractual obligations.
In this economic climate the banks are demading a lot more surety and big Daddy back in London is now looking for a lot more than a back of the envelope proposal to aquire CSG. They are demanding certification.
If BG dont get PURE I wouldnt want to be their local MD. You dont sign a supply contract unless you are sure you can supply. And at the moment BG cant supply.
I expect an improved offer and even then I think they might get out-trumped. No wonder BOW is doing a cap raising to prove up 2P reserves...urgently.
AOE Price at posting:
$2.68 Sentiment: LT Buy Disclosure: Not Held
