AOE 0.00% $4.68 arrow energy limited

That seems to b the figure thrown around in the media Mid-$5's...

  1. Ya
    5,477 Posts.
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    That seems to b the figure thrown around in the media Mid-$5's or High-5's

    Not too sure abt the outbidding at this stage, given that its Shell's second try in recent times & it would b a waste of time to come back in Xmas, so a sweetner will do.

    Wont surprise me if NHC decides to flog its 122.6mil shares in AOE (acquired in July '06 for A$119.3m, ie sub $1) as will AGL (2P-506 PJ, 3P-1027 PJ in Moranbah).

    Shell have a pretty good understanding with PTR in recent times, given that the later happens to b a good customer & wasn't quite a big surprise when they got them as a partner. We've seen CNOOC signing up with BG last May, so no surprises on this latest move.

    Here are some of the LNG deals PTR have signed recently,

    1) In 2008, RDS-PTR QatarGas-4 deal. Shell to supply 3mtpa for 25 years (note: 1MT LNG is 48 bcf gas or 8.97 mmbboe)

    2) Nov '08, RDS-PTR Gorgon gas sale. 2mtpa*20yrs for $33b

    3) XOM-PTR Gorgon deal 2.25mtpa*20 for $50b

    Its a pity that Donny lost PTR in Decemeber. Huge mistake, hope he can find another buyer frm Japan or Korea or had this foresight of alternative energy plays. No wonder majors are throwing in billions to lock in Shale oil plays in the US while WPL are living off their Nth west shelf acreage (predominantly amongst others).

    Traditionally for Oz, Japan has been the biggest buyer & in recent times emergence of Taiwan, Sth Korea & China has opened up a raft of sales opportunities for LNG suppliers in Oz.

    As for Malaysia & Indonesia drying up, thats the biggest load of bull Eureka have come up with. Perhaps next time they could research some stats first b4 jumping to conclusions.

    Here are some facts for the Asia-Pac region, more so for the MLY & INA.

    1) Indonesia:
    '08 1P gas: 112.254 tcf
    1998-2008 Prodn: 26.66 tcf, Consmptn: 12.94 tcf,
    Surplus for Export: 13.71 tcf

    2) Malaysia:
    '08 1P Gas reserves: 84.367 tcf
    1998-2008: Prodcn: 20.06 tcf, Consmptn: 9.86 tcf
    Surplus: 10.20 tcf

    One could throw in Brunei to this region, since its got a export surplus of 4.8 tcf over the same period & 1P-12.35tcf.

    3) Australia:
    '08 1P Gas: 88.6 tcf
    1998-2008 Prodn: 13.42tcf, Consmptn: 8.66 tcf,
    Surplus: 4.8tcf

    IMHO, QLD & PNG have opened up a new avenue for potential buyers.

    Gas is there, as is the increasing demand for it. Having to many vendors will however keep the gas prices very tight. That's why we haven't seen any billion dollars thrown around for the deals that XOM-STO-OSH have done or for that instance any other QLD operators (who have kept it very tight).

    Hopefully nxt week we shall find out whats the next target price set for Arrow.
 
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