re: Ann: AGK:AGL confirms proposal to acquire... ages ago i did...

re: Ann: AGK:AGL confirms proposal to acquire... ages ago i did a rough calc on what sort of profits the UGS would generate - and it was substantial.

the problem is that for MOS, the capital costs to build the UGS were/are prohibitive.
thats why MOS was scouting for a partner.

almost certainly MOS would have approached AGL.
SO AGL would have the inside info on the UGS.

the UGS was to store something like 90pj of gas, with an amount of about 70pj which could have been used up/down.

70pj is enough gas to run a 1 mtpa LNG plant for a year.

(these numbers are from memory - so treat with caution as i am getting old)

i think I had found numbers of cents per tj or gj, which MOS would have charged to store and retrieve the gas.

whilst I cannot remeber the details, I can relate that the revenue for MOS was projected to be in the tens $millions p/a - it would have been a big money spinner for MOS.

as I say, the raising of the capital was the killer for MOS - too big for a tiddler.

what we should be asking is:
- did AGL get hold of the due-diligence material for UGS?
- is AGL utilising that material (which would have been provided in confidence) to make an opporunistic bid for MOS?
- is AGL therefore bidding utilising insider information?

cheers