Takes advantage of PGS's financial situation and picks up the remaining 20% of the title and the titles themselves (PGS held them I believe), so this secures title fo bugger all spend.
Note that Senex farmed out roughly 80-90% of the deeps sections of these tenements for something like a $50m+ free carry to Origin a few years ago
So the tenements are highly prospective. I think the free carry was up to $80-$100m. Senex just paid $400k for 20% of the deeps AND the shallows.
I suspect that Senex will farm down the Deeps again for the best free carry it can in the next two or three years and this 20% from PGS makes the farm down easier and still allows Senex to retain a reasonable working interest. Not sure about the shallows but Senex may be more keen to explore these themselves as they specialise in this - certainly a good thing to have for the medium term
SXY Price at posting:
47.0¢ Sentiment: Buy Disclosure: Held
