IMHO, AOE could b looking at a combination of options whether to tap the mkt for funding or squeeze more out of PTR-RDS.
AOE has $253.44 mil in cash, but needs far more then that to take things to then next level. So capraising could b an option.
The other alternative, as u mention, is to wait for a rival bid, but where r the bidders, when u need them!!
GDF-Suez got onboard with STO in NT last August. Am not sure about BP, since they've sold their gas in Gorgon to Shell & intend to buy back the LNG, so thats why we've only seen multi-billion LNG deals in the media by Exxon, Chevy & Shell, none frm BP. This morning BP bought a major portfolio acq. for $7b in Brazil & the Caspian & were actively looking at contracts in existing oilfields in Iraq, so I am not sure HM, abt further options.
It is my opinion that 5 LNG plants in QLD are 1or2 too many, so perhaps consolidation will b good. It gives any potential buyer different options. Would u drive around 5 servo's to buy the cheapest fuel (as an analogy), unless they were next all nxt doors :))
I still think AGL & NHC are 2b watched very closely.
AGL have a total debt of A$1.0867 bil, so sale of their Moranbah reserves of 2P-506, 3P-1027 & ATP-364's 2P-246, 3P-1307 PJ might b an option to wipe out their total debt. This way, they won't have to dip into their cash holdings of $576.5m.
AGL are known for their strategic thinking, just early last year they sold their PNG assets to MErlin Petroleum for A$1.127b besides the 22% stake in QGC for $1.8b to reduce their debt, so this may well b on the cards.
The stand-off continues for now. ----------------------------------------------------------
Here are the reserves for now:
Gross: 1P-805, 2P-6150, 3P-11042 PJ
AOE's net: 1P-432, 2P-3690, 3P-5781 PJ
AGL's: 2P-752, 3P-2334 PJ (incl. ATP-364P)
Blc Shell: 2P-1708, 3P-2927 PJ
Current offer for AOE: $4.45/share or $3.259 bil (for 732.3815 mil)
NHC owns: 16.8% AOE shares (or ~123mil)
AOE Price at posting:
$5.11 Sentiment: Hold Disclosure: Held
