Pintohoo,I think it is pretty clear, they also stated a A$4.4mm...

Pintohoo,

I think it is pretty clear, they also stated a A$4.4mm pretax profit on the asset. With the commitments attached to it STU's right to earn 50% (not a stake of 50%) carries a huge liability and was clearly not worth very much, and to a small company like STU the burden of managing and funding that commitment made it worse than worthless. Not worthless to a better financed, more suitably skilled company such as PTT though - and I guess they can get some PRRT credits that STU couldn't.

All up I think STU have done well to make the commitment pre meltdown last year, with the poo sky high, and to know walk out in the post GFC world with a profit - non too modest for a small company like STU either, nearly 7 cps pretax.

EL