the way this deal is seen + we're on bloomberg

This "alliance" is a good deal for both BPT & ADE.

BPT securing 19.9% stake in ADE is to protect ADE from possible predators other than BPT. Examples of this style of alliance is STO/ESG and AGO/FRS/CTM.

In effect, what this means is that BPT knows how much potential is in PEL218, ATP855, the Marybourgh Basin, and the Otway Basin + Underground Gas Storage (which is the first in this country).

Read this:
http://www.adelaideenergy.com.au/media/OilGas-Review-Nov10.pdf

Essentially for ADE holders, this is good, due to the fact at 16.5c is a premium that BPT is getting in and much necessary move, as ADE's Quarterly showed we have around only $850,000 cash at hand. BPT injecting up to $12m, helps provide ADE with much needed cash to fund all the projects including PEL218, ATP855, PEL105, and the Otway Basin assets. The Marybourgh Basin is being funded by BUL, so this is good and yet we are still trying to offload ATP849 and ATP904. Don't forget we still hold 15m worthless ROG shares, which in a year's time we can sell if it still trades for 1c, we cash in $150,000. With BPT's investment and admittance of a BPT nominee to the board, we are assured that ADE is going forward from here.

For BPT? This provides a cheaper option for BPT to secure some control of ADE (if other companies want to takeover ADE) and gives them that exact interest in what it strongly seeks:
- 100% interest in PEL218
- larger than 40% interest in ATP855

Esp. when BPT and ICN were fighting over the interests of ATP855. BPT sees ICN as a unreliable company, one with tricks and deception in breaking agreements. So control of ADE pushes BPT to nearly 60% interest in ATP855, rather than dealing with a company with no gas ICN.

Another strategic thing for BPT is ADE's underground gas storage, this will prove useful for BPT as it plans for a LNG project with ITOCHU in Adelaide.

Also the merger talks with SNE (a 57% controlled subsidiary of BPT), is likely seen as a backdoor entrance to boast its stake in a newly merged ADE-SNE.
With BPT currently holding about 4% of ADE and after deal BPT has 19.9%, BPT can extend further control in an event of a ADE-SNE merger via scrip for scrip deal.
With 75m options to be issued to BPT (exercisable at 40c per share) reflects the strong potential to come.
Unfortunately for poor ICN company with no gas, they were worth $223m back in 2009, now today they are worth $70m (just the same market cap as ours, we were worth $25m back in 2009, now worth over $70 post-BPT transaction).

http://www.asx.com.au/asxpdf/20091009/pdf/31l7nlqm453smv.pdf

Also some good news for ADE as it?s the first time we got publicity in Bloomberg. This is greater publicity for worldwide markets of a small proven energy company like ADE (a partner company of BPT and future subsidiary of BPT).

http://www.bloomberg.com/news/2011-08-15/australia-s-somerton-energy-adelaide-energy-in-talks-on-potential-merger.html