you cant work out why they are over $8??? Thats probably a...

you cant work out why they are over $8??? Thats probably a pretty fair comment when you use the CSG valuation metrics that are thrown around.

The reason why they are currently at $8 (and imo they are probably worth much more than this) is not just their proven reserves, but their enormous prospectivity in some pretty rich CSG areas. I guess you could also ask the same questions as to why BOW is currently trading at +80cents, and the answer is the same.

I would like to think that there is some pretty intense backroom negotiations going on. BG are clearly not going to get anywhere near their target which is 100% ownership of PES. AOE knows this, and so do a lot of Pure shareholders, not to mention the people buying at +$8 right now.

When BG turned up in Aussie, they tried to push Origin around flashing billions of cash. Instead they are having to settle with snapping up a lot of smaller players. Trouble is, they have already announced that they have a shed load of cash and are willing to use.

I would personally like BG to show me the money if they are not going to give PES holders any exposure to future upside investment in CSG (as AOE were when they had bid). Technically only a few days left now and not much guessing to be done. I could see AOE just letting the deadline slip. They dont need the cash from the Pure deal and they are in a win win if they call BGs bluff.

SF