Options expiry on 31st. Magnum Hunter will need to have $ in by then for existing arrangement/deal to continue to be executed.
Looking up Magnum Hunter (MH) in the US, it has been going pretty well over the last few months. Now a $1.3 billion company and they have just knocked back an offer from GE of $1 billion for a pipeline it owns (based on US discussion boards).
So MH in a better position to afford AQO deal than a few months ago.
AQO acreage still great. Its acreage is more like Senex acreage than DLS or BPT acreage. I understand that people in Senex are predicting a market rotation out of DLS and BPT into Senex over next twelve months (know this is talking their own book, but they have strong reasoning for this linked to information already being tossed around by market analysts looking to identify preferred locations in the Cooper in future).
The Cooper still critical to gas supplies through Gladstone and within Australia.
The strategic value of the AQO lease still there. So I expect MH deal to be completed, or a similar deal where someone with special expertise that adds value to unlocking the Cooper (unconventional gas), accompanied by new value added to AQO because of this. Or, I expect, another type of deal such as where AQO gets flogged off to the highest bidder. Cant see this being for under 25c.
Should be interesting!
AQO Price at posting:
17.5¢ Sentiment: Buy Disclosure: Held
