what david archer knew, page-17

I think ESG are great value.

In terms of takeover, I don't believe STO are in a position to be able to do this in the next 6 months. That is, unless they are able to sell-off more assets and continue to raise funds (which is unlikely to be for a takeover). STO need plenty more to get Gladstone running and that is their focus at the moment.

So, if we see some corporate activity, it will come outside. AGL may actually be the one. They are focused on providing gas to the NSW market and in buying Sydney Gas and MPO's asset (can't rememebr the name) earlier this year, they did say they were looking to 2000 PJ of 2P (these combined gave them 1000 PJ).

Alternatively, we may just see an ORG or overseas player come in. The is increasing focus on Gunnedah and AOE have shown their interest in the region recently.

So, I think STO is not in the picture in the short term, and may be forced into a tight spot, as I'm sure other players out there know this and may look to jump in becasue of it. All this, of course, will be subject to the next lot of reserve upgrades and rhetoric confirming the significant reserve.