beibu, page-6

You, ROC holders, better come down from the tree...

HZN does not have to sell anything for few bucks, especially when it is just about to cash in $100m from Osaka Gas.

And selling Beibu at its production peak and with still exploration potential? Are you seriously serious??

The offer(s) made to HZN must be very good (including the eventual ROC's one) or HZN will simply say a big NO. That is actually what I think will happen on Tuesday, but I expect that "NO" will attract the attention of other big companies (STO, Exxon, OSH, AWE, etc.) over HZN assets and it will definitely trigger a tough takeover competition on HZN, whose sp price could reach a value between 80 cents and $1. Remember that what determines the value of an asset (in this case, HZN gas fields in PNG)is not just the gas/oil resources it contains, but also is geographical location in relation to other existing gas/oil fields (I am sure, you understand well what I mean here).

With Beibu and Maari (NZ) at full production, huge potential exploration/development projects planned or ongoing (both at Beibu and Maari), PDL licence received for Stanley and another PDL handled in in strategic PNG, HZN is just at the point to turn itself into a bigger oil/gas company. They will not sell out anything for few bucks: that is for sure.

However, I must also say that, considering the big investments likely to be required in PNG in the coming year(s), HZN may struggle a bit to keep the financial sheet under control and I guess, they may decide to focus on PNG, leaving Beibu and Bohai exploration/development activities behind. Here, ROC (especially keen to boost Chinese profuction and fields) may forward a deal to HZN to reformulate % HZN/ROC ownership in both Beibu and Bohai in order to speed up exploration/development work up there. BUT again, it must be a good deal for HZN or HZN will not sell anything of its current main source of profit: Beibu. This is also clear.