The AAL thick oil project in Indonesia probably wont get FID unless oil goes to $70+
If it does FID then AWE will have to find about $300M
Waitsia - how much to buy out the ORG newco?, how much to fund development?
AWE has enough potential commitments already
My great hope is that the ORG newco gobbles AWE
The Lonestar offer at 80cps was rejected by AWE
History should tell Mr Biggs that 70cps is now about the takeover value
And if he didn't see value in the offer at 80cps, considering the subsequent abysmal performance of AWE
70cps would now be reasonable and worthy of presenting to shareholders
EGO - mkt cap $22M - have to pay about $30M to acquire it
Maybe ORG newco will grab it
In the old days oilers had very low debt
They would finance their wells through cash flow from production
and capital raisings
This period of low interest rates has led their CFOs to say that debt is cheaper than capital
But debt has to be repaid
and interest rates are rising
AWE has done well to reduce its gearing
AWE Price at posting:
49.8¢ Sentiment: None Disclosure: Held
