inside business, page-13

Greggy

We must see something from the board tomorrow surely?

As far as I can see Shell doesn't have a LNG project without AOE's assets and it only has 30% of them. So it seems to me that AOE NOT Shell should have the upper hand. I know some will argue that they can't afford to put Petrochina offside as they may be an important customer. But still .. to get the best price for shareholders (and that's the board's job) they have to at the very least say the offer is inadequate given the likely future growth of reserves in their barely explored leases. And solicit other bids ... if they don't see that they can stay independent that is.

Shell know AOE's business well .. but AOE likewise know what is required for Shell to achieve its aims. This should allow AOE to hold out for more (they will have a good idea of how badly Shell needs them and hence how likley or not it is that Shell and Petrochina might walk away).

H