Interesting story by the FinReview. So the question is what's...

Interesting story by the FinReview.

So the question is what's changed since Oct15 offer by Scepter & this one? 2P has gone down, they've sold asssets to bring down debt & issued more shares to raise capital.

Oct2015:
Shares: 1.03773b, Offer: A$6.88, MC: 7.1395bil
Net Debt: 8.791 bil
EV: $15.93 bil
2P: Dec2014 end minus producn till Sept15 qtr 1245 mmboe - 23.1 = 1221.9 mmboe
EV/2P metric: $16.38/boe

Nov2017:
Shares: 2.082911 bil, offer as per AFR: $5.3, Implied Mkt Cap: 11.039bil
Net Debt: 2.8 bil
EV: 13.84bil
2P: Dec 2016 end minus prodcn till Sep17 qtr: 889 - 44.3 = 844.7 mmboe
EV/2P: $13.03/boe

So what's new ??

Well cashflow projection has increased from $532mil to $659 mil over 2 years. POO has improved a bit.

PNGLNG started to get cashflow in the coffers.

Assets in Victoria, Mereenie were sold.

Shares issued to Hony.

In hindsight, they could have flogged it 2 years ago. Still the comparison provides a good comparison for their Board to assess the state of affairs & see where the POO goes in 12-24 months time and also how much more debt can b reduced and subsequent increase in Cashflow.

Barossa gasfield has net 2C-1.1 tcf (gross 4.3 tcf) & the Browse basin discovery at Lasseter can bring in some more cash. Not sure what they'll do with Petrel-tern, mayb tie back to Blacktip should someone at STO bother to chase this up with ENI or just leave it for the next decade.

Anyway that's how I see it. Rational arguments welcome.