# SXP - SAPEX Limited



## Santoro (28 June 2007)

This stock has jumped out of the blocks today on CSG announcement...this was an IPO a couple of months ago anyone have any comments about it??


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## gordon2007 (28 June 2007)

Some news out about coal.

http://www.aspectfinancial.com.au/d...nZXNpZ25hbC9lcnJvcnBhZ2VzL3BkZmRlbGF5ZWQuanNw


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## macca (9 July 2007)

More action today !!

Seems to have bobbed up on someones radar, a trillion BCF with M/cap less than $20m has got us all excited

I hold


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## moses (11 July 2007)

SXP is up 18% to 36c today, and oppies up 50% to 24c. Its got a lovely little chart, and there are only 6 sellers left on the oppies; fingers crossed for a multi-bagger!


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## AussiePaul72 (29 July 2007)

SXP seems to be stationary at present around the 35-40c range. I got out at 37c last week and made a nice profit. The SP had started to slide back a bit prior to the MOU announcement. However, i like the look of SXP down the track. Its early days at present. I'd be interested to know what others think of this one at present and what the SP might do in the short to medium term?


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## Col Lector (8 August 2007)

SXP.... 65000km² of Exploration Licences in South Aus prospective for coal/CSG/UCG/CTL and oil/gas. 
1.7 billion t initial Jorc inferred sub-bituminous coal resource ann for 2 of the EL's; Target4to 5 billion t for these  2 EL's.
Recently signed an MOU with LNC to target insitu production of power & synthetic diesel from SXP's coal resources using UCG (Undergroundcoal gasification) & CTL (Coal to Liquid).
Potential to supply energy to Olympic Dam & Prominent Hill developments.
These guys are generating a good flow of very positive ann's. 
Current market cap about $40mill. 90 mill SXP @ $0.33 & 70 mill SXPO currently $0.24. Options ex at 25c at or before Jan 2012.   .
Board promising, with  considerable knowledge of SA geology. 
SXP holds the entire Arckaringa Basin, whose geology it suggests as a potential geological "repetition" of the CooperBasin.
I do hold....


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## Col Lector (9 August 2007)

ASX RELEASE 9 August 2007
Additional Information - SAPEX boosts Arckaringa coal and
coal-seam-gas estimates
The Directors of SAPEX are pleased to report a significant expansion in the initial
inferred resource estimate for coal deposits and potential coal seam gas content
within the Company’s vast Arckaringa Basin exploration licence areas in South
Australia.
The new inferred coal resource estimate - prepared in accordance with the JORC
code – follows an independent review by consultant group, Geos Mining, of the
pre-JORC drilling data, within a second SAPEX Exploration Licence (EL) 3326
(Weedina).
The first coal resource, in accordance with the JORC code, was announced in
June this year from SAPEX’s EL 3325 (Wintinna East).
The results announced today from the Geos Mining study – based on previous
drilling undertaken - are that EL 3326 (Weedina) contains:-
• One billion tonnes of inferred resources of sub-bituminous coal in 6
seams located in the south-central area of the licence.
• Outside of this inferred resource there is an exploration target of 2
billion tonnes of sub-bituminous coal within the EL area. (The
exploration target has been provided by the consultant, Geos Mining,
and forms part of its report to SAPEX).
A copy of the Geos Mining Statement is attached.
Major Coal Seam Gas potential
“The outcome of the initial study on EL 3326 indicates a potential for some 300
billion cubic feet to 900 billion cubic feet of Coal Seam Gas (CSG), based on a
notional gas content of 300 scf/tonne,” SAPEX’s Managing Director, Mr Andrew
Andrejewskis, said today.
*“When combined with the results of the study on EL 3325 (Wintinna East) - which
was reported on 25 June this year - the two EL’s combined have an in-place
potential for CSG of between 507 billion cubic feet to more than 2 trillion cubic
feet,” he said.“This combined CSG estimate only covers the areas of EL 3325 and EL 3326 and
does not include the remainder of the Arckaringa Basin which is held by SAPEX in
seven Petroleum Exploration Licences (PEL) covering 65,000 sq km.*“As reported earlier, our interpretation of coal occurrence on seismic data in this
general area *indicates a large distribution of coal covering an area of at least
3,500 km which provides ample opportunity for further major CSG resources.”*Mr Andrejewskis said SAPEX would conduct exploration activities aimed at
investigating the potential for CSG over the coming several months.
“These activities are separate from the work that will be undertaken by Linc
Energy with respect to Underground Coal Gasification and potential production of
clean diesel under the Memorandum of Understanding (MOU) as announced on
29 July 2007,” he said.
Under the MOU signed by the two companies, Linc will identify suitable locations
within SAPEX’s South Australian licence areas to investigate and then establish
Underground Coal Gasification fields for the production of Low Greenhouse Gas
emissions for Power, and Environmentally friendly Coal to Liquids (CTL) Diesel.
It is the intention of both SAPEX and Linc to then enter into a formal Joint Venture
Agreement to commercialise such suitable resources.​​​


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## Col Lector (9 August 2007)

This interview is well worth a listen....expands on the releases of today,and yesterday. Potential for humungous coal resource to tap for CSG;as well as for UCG & CTL 

http://www.brr.com.au/event/SXP/2326/26831


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## Col Lector (9 October 2007)

Is the giant awakening.?? Much increased volumes, sp up about 10% with strong close. The initial enthusiasm of investors after the May07 IPO has ebbed post-correction; and also while drilling rigs remain idle as detailed plans are hatched. The LNC JV has the potential to unlock early revenue fom the vast JORC coal resource, and enable funding of extensive drilling of oil/gas & CSG targets. 
The apparent geological similarity between the Arckaringa Basin...of which SXP holds almost in entirity in its 80000km² 100%-owned tenements....and the productive Cooper Basin has often been hypothesised. The ultimate question is hanging to be answered.
Which could bring plenty of drill test result adrenalin for shareholders, and ensure some well-negotiated farmins get things rolling over the next couple of years.
Current Mkt Cap about 19mill at 30c


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## Col Lector (9 October 2007)

The five-day perspective ....
Will be interesting to see if current pickup in activity will be sustained. A SXP progress report would be useful here.
However at current prices mkt cap <20 mill, and that includes almost 10 mill cash in bank....& 100% of 80000km² PEL's......bargain-hunters??


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## Col Lector (10 October 2007)

SXP consolidated its gains of yesterday. Had a bit of a mid-afternoon malaise, but a strong finish up 15% with good vol, which augurs well for ron. This sp gain should be placed in perspective...the current SXP sp at 34c (mkt cap~25mill) is still substantially below the pre-correction levels of around 43c...& I don't think they have been idle.....


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## Col Lector (27 October 2007)

SXP is sitting on several billion tonnes of coal and has entered a MOU with Linc Energy to harness this coal resource to produce synthetic  gas (UCG) & liquids (* CTL *...coal to liquids ie, a  diesel from coal).
The enormous potential for such synthetic fuels from coal becomes fairly stark on reading the article below. 



> US air force eyes alternative fuel
> SMH October 27, 2007 - 5:49PM
> 
> The world's most powerful air force is seeking to wean itself from foreign oil and nearly wipe out its carbon dioxide output as part of a sweeping alternative energy drive, a senior Pentagon official said.
> ...


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## grace (26 January 2008)

Col Lector said:


> SXP.... 65000km² of Exploration Licences in South Aus prospective for coal/CSG/UCG/CTL and oil/gas.
> 1.7 billion t initial Jorc inferred sub-bituminous coal resource ann for 2 of the EL's; Target4to 5 billion t for these  2 EL's.
> Recently signed an MOU with LNC to target insitu production of power & synthetic diesel from SXP's coal resources using UCG (Undergroundcoal gasification) & CTL (Coal to Liquid).
> Potential to supply energy to Olympic Dam & Prominent Hill developments.
> ...




Col Lector - do you still hold?  I do.  Trying not to fall asleep waiting for drilling, but it is getting hard not to.  Good potential this one.  In feb, if and when Linc Energy (LNC) prove up GTL, surely this should get a bit of a kick....just hoping.


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## AussiePaul72 (27 January 2008)

Sapex sure have a huge coal resource, huge potential for coal seam gas and also petroleum exploration potential. I bought in soon after the IPO and sold at 37c. Recently i bought in again at 21.5c as i think 2008 could be an exciting year for SPX. In my opinion, with a current MC of under $20 million, it wouldn't take much good news to see this one get a kick along. At around 20c it would appear very good value IMHO, however, DYOR


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## grace (15 February 2008)

AussiePaul72 said:


> Sapex sure have a huge coal resource, huge potential for coal seam gas and also petroleum exploration potential. I bought in soon after the IPO and sold at 37c. Recently i bought in again at 21.5c as i think 2008 could be an exciting year for SPX. In my opinion, with a current MC of under $20 million, it wouldn't take much good news to see this one get a kick along. At around 20c it would appear very good value IMHO, however, DYOR




Agree with you.  Seems that all my CSGers are climbing into bed together.  SXP has just done a farm out to ESG which I am very pleased about, and LNC have done a farm in with SXP, which I am also pleased about.  I own all of these.  My only one to not hop into the same bed is QGC - it might turn up sooner or later you never know.  Lets hope together they can find that coal seam gas and sell it!
SXP at the very early stage (commence drilling this year), ESG at 1% drilled and well, you probably know the story with QGC (approaching $3 bill cap last time I looked).  LNC being the csg to syngas to liquid pilot project due this month.  LNC goes well, csg in general would be more lucrative used in liquid fuel than production of electricity!


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## grace (19 March 2008)

Presentation on sapex out today explaining what is in store for this year.  Well worth a read.  Potential for 10 - 30 TCF gas in Archaringa Basin.  How does this compare to PJ's???

There are also some accumulators  with a few massive sell orders in too trying to push the price down by the looks of it.

http://aspect.comsec.com.au/asxdata/20080319/pdf/00824672.pdf

Can you let me know if you can't access this from my post as I'm not sure if I am doing it right.


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## frotman (19 March 2008)

Hi Grace,

it works. So, whatever you did, is correct.
I downloaded the presentation.

regards, frotman
(I hold SXP)


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## grace (28 March 2008)

Sapex to launch oil and gas exploration.  Like how they suggest power for mines (BHP Olympic Dam expansion if it gets the go ahead will be very very thirsty for energy and very very closeby).



> *SAPEX TO LAUNCH NEW OIL & GAS EXPLORATION*
> *IN THE ARCKARINGA BASIN*​
> The most detailed oil and gas exploration activity in some 25 years on South Australia’s Arckaringa Basin is about to begin under a new contract announced today by SAPEX Limited (ASX: SXP).
> 
> ...


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## henry vanderhave (28 April 2008)

Hi people,sxp moving along nicely today,options up 25%,almost no sellers huge resources,JV with linc on couple of areas,emerging sleeper,my opinion only,check it out.


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## farout (15 May 2008)

Bought into Sapex today at 46c, moving along very nicely now. Nobody wants to sell their SXP, very tightly held. Very much a sleeping stock, just watch it rise in the next couple of weeks


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## Col Lector (15 May 2008)

farout said:


> Bought into Sapex today at 46c, moving along very nicely now. Nobody wants to sell their SXP, very tightly held. Very much a sleeping stock, just watch it rise in the next couple of weeks




Farout...sold 1/3 of SXPO yesterday at 0.215...a difficult decision..in order to retain a holding in ERH with drill results pending from Brazil oil project.
It was one or the other....thankfully ERH up 90%...so not kicking myself too hard.
Do agree though...tightly held with huge potential. The more publicity LNC garners, the more exposure SXP will gain


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## farout (15 May 2008)

Nice work Col, think we'll see similar results with SXP, over a longer period however. Sometimes it's just about being in the right place at the right time.


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## Dukey (15 May 2008)

Col Lector said:


> Farout...sold 1/3 of SXPO yesterday at 0.215...a difficult decision..in order to retain a holding in ERH with drill results pending from Brazil oil project.
> It was one or the other....thankfully ERH up 90%...so not kicking myself too hard.
> Do agree though...tightly held with huge potential. The more publicity LNC garners, the more exposure SXP will gain




Many difficult decisions in the CSG & UCG sector at the moment.  I sold a few PES just under $1 to lock in some profits and hey presto - 25% gain since then!  Lucky I still have some!!

Bought SXPO with the PES profits (after keeping an eye on them for some time) and pretty happy with them so far so like-wise, I can't complain!!   
Probably any of these CSG/UCG stocks have mileage in them - though I feel SXP will be huge when it starts proving up resources - so I expect this one will be a bottom drawer stock for me...

good luck all.


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## Col Lector (15 May 2008)

Dukey...you must be loving the CSM focus...as the true believer you have been through the thin times. I got squeezed out of a few of my CSM stocks with the sub-prime debacle but held onto/accumulated  AJL (my main stock along with NXS) and have been accumulating SGL & SXPO....with expectations of focus on NSW CSM to be next off the rank...


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## farout (15 May 2008)

News just out, Sapex has got two new mineral exploration licenses... keep that news rolling Sapex         .


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## farout (15 May 2008)

I've been buying into the UCG sector for a couple of years now as well Col, back when LNC was just a baby. Things sure have picked up and I'm still riding the wave of underground coal.


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## Col Lector (15 May 2008)

farout said:


> Nice work Col, think we'll see similar results with SXP, over a longer period however. Sometimes it's just about being in the right place at the right time.




Makes a nice change farout...though I note SXPO( up 43%) is  narrowing the gap with ERH (now up 75%).....all good


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## Dukey (15 May 2008)

Col Lector said:


> Dukey...you must be loving the CSM focus...as the true believer you have been through the thin times. I got squeezed out of a few of my CSM stocks with the sub-prime debacle but held onto/accumulated  AJL (my main stock along with NXS) and have been accumulating SGL & SXPO....with expectations of focus on NSW CSM to be next off the rank...




SXP today - came back for lunch and BANG - she was off - just before the announcement .  very interesting - but hey - I'm not complaining!

Sector has been great recently - yep, Col.  Wish I had got onto LNC back when I first looked at it...  but everyone has 20/20 hindsight I guess!!   I expect a big future for CSG / UCG across the board, some consolidations maybe soonish, maybe down the track... I'm wondering today if the bigger CSG players might be looking at the up-coming UCG companies and rubbing their hands together for a tilt at a t/o??   
Seems to make perfect sense to me - though not sure if it's feasible to extract CSG first then come back and go for the UCG.   Havn't worked out if they need different type of coal or what??... any ideas...???

(might post this question on the general CSG thread)

-dukey


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## In-consistant (15 May 2008)

it just builds & builds, holding a strong on 24% today


SAPEX awarded two new mineral Exploration Licences in St Vincent Basin.
SAPEX is pleased to advise that it has been awarded two new mineral Exploration Licences,
(EL), in the St Vincent Basin, immediately north of Adelaide.
The licences are:
EL 4147 Inkerman area, approximately 70 km NNW of Adelaide; 288 sq km
EL 4148 Walloway area, approximately 90 km SE of Pt Augusta; 173 sq km
Both of these ELs lie within Petroleum Exploration Licence (PEL) 120 in which SAPEX holds
a 100% interest. The ELs have been awarded for an initial term of one year but are
renewable.
The purpose of both licences is to explore for Coal Seam Gas (CSG) and Underground Coal
Gasification potential in the Tertiary age brown coal where internal studies have indicated the
presence of coal at varying depths below the surface.


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## farout (15 May 2008)

Quite right, however I don't know how anyone can take you seriously with the nick "In-consistant".  But I guess mine isn't much better.


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## In-consistant (18 May 2008)

farout said:


> Quite right, however I don't know how anyone can take you seriously with the nick "In-consistant".  But I guess mine isn't much better.




  Farout thanks alot? I think Sapex is holding strong, and has the potental to go along way for Investors. What do you think, any reason why its not as good as I will cliam, pls respond anyone?

  I brought into Sapex 2 July 2007. When I spoted SXPO bounce through the rictor scale on my percentage radar. WHY; because I was looking for stocks in the Energy Sector, that were going to prosper from Low Green House Gas Emmissions. All around the time the Government was announcing to do its part towards Global Warming. Sapex appeared perfect for that notion and a good reason to Invest I thought.
https://www.ausiex.com.au/ComNews/20070719/00740318.pdf

  As its turning out, I was right. Sapex is really fuctioning good for my money and I can't see any reason for it to not to continue in this fashion. Can You?
I am rather excited about Sapex and there announcements, 100% owned, excempt a couple of partnerships with ESG and Links, whom have a small percentage, for them to ensure sapex get it right. As a environmentally friendly mining scheme, Coal to Liquid (CTL) diesel. That I think speaks volumes for todays era and the economony. Apparently they have alot of it.
https://www.ausiex.com.au/ComNews/20070808/00746652.pdf
https://www.ausiex.com.au/ComNews/20080328/00826932.pdf

  On that note, you's can see that I can only brag about it, and bring forward the links already mentioned about Sapex and I quess what I think, really stands out concerning it. Certianly value for money, in my book, as I feel it has only scratched the surface and will go a long way for Investors.
Now of course there is alot more involved for concerned Investors like me. Such as; is it well managed and constucted for distrobution. I think so, as I believe Sapex is laying it foundations well, and in a responsable buisness sense. I can only imagine a excellent Profit Combound to continue and exceed our exspectations.

  What do you guys think, am I in over my head? Does sapex rely heavally on buyers? Is there something I may of missed, that could be Sapex's demise?


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## blehgg (6 June 2008)

Appears to have broken out today 

I'm just following graces comp picks around lol 

congratz grace  u seem to be doing wel hehe

up about 16%


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## grace (6 June 2008)

blehgg said:


> Appears to have broken out today
> 
> I'm just following graces comp picks around lol
> 
> ...




You don't seem to be doing too bad yourself! 

I haven't won one yet, so don't get too excited.  Picked LNC the month before I should have.

Have to see how Mr Bond goes making his movie at Chinchilla (action or horror) to see if SXP is in with a chance this month.


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## nevieboy (6 June 2008)

WOW. What's going on here. It's up 25% today.
Any ideas what's happening to this stock today?
Let's hope it keeps going north for all of us that hold.


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## Dukey (6 June 2008)

nevieboy said:


> WOW. What's going on here. It's up 25% today.
> Any ideas what's happening to this stock today?
> Let's hope it keeps going north for all of us that hold.




Nice day indeed
- if I'm not mistaken there should have been some drilling going on recently (by linc I think? ) so it's possible that good results might be leaking out...   you know what they say...
_
loose lips sink ships.....
but leaky lips...   turn ships into rockets!!!_

Gotta love CSG/UCG recently.

These guys have huge tenements - almost all of the arckaringa basin NW of adelaide, + some closer in near GLX,  - so their potential resource is equally huge.  will have to try to find the targets...

-g'luck - dukey.

(holding sxpo)

-------------------
edit: will be very interested to see if there is an announcement soon


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## nevieboy (6 June 2008)

Dukey said:


> Nice day indeed
> - if I'm not mistaken there should have been some drilling going on recently (by linc I think? ) so it's possible that good results might be leaking out...   you know what they say...
> _
> loose lips sink ships.....
> ...




Nice day indeed Dukey.
Even though it closed the day at over 16% from it's high of about 25%,
it was a good day had by all.
Let's hope that it keeps rising next week, and then hopefully an announcement, so that it will be heading much norther than north.
Good luck to all holders.
Have a great long weekend.
Go the BLUES. (Carlton footy club)


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## Dukey (10 June 2008)

nevieboy said:


> Nice day indeed Dukey.
> Even though it closed the day at over 16% from it's high of about 25%,
> it was a good day had by all.
> Let's hope that it keeps rising next week, and then hopefully an announcement, so that it will be heading much norther than north.
> ...




!!!  looks like it might be a bigger announcement than we thought  - (and definitely some leaky lips last week!)

- Trading halt to await announcement on POSSIBLE MERGER!!!
- Most likely candidates (in my view) - Linc or ESG both of whom I think have existing links with SXP.  Then again - could be  a bolt out of the blue. ...  STO??  QGC ??

 EDIT : would appear to be Linc as they are both in a trading halt - announced before open this morning, and finishing thursday before trade - or after announcement.


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## grace (11 June 2008)

Someone thinks the offer will be $150million, which equates to about 90cents per share (fully diluted).  



> Mining and resources company Linc Energy is set to acquire South Australia-based Sapex, which specialises in underground coal gasification (UCG). The two companies entered a trading halt yesterday in anticipation of a deal. Brisbane-based Linc, which has accumulated a 5.3 percent stake in Sapex over the past two months, is expected to offer about A$150 million for the takeover target. The UCG assets will be used by Linc for clean diesel production, and possibly for electricity generation.


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## Dukey (11 June 2008)

grace said:


> Someone thinks the offer will be $150million, which equates to about 90cents per share (fully diluted).




90cps sounds pretty good - but then sxp could have humungous resources in arckaringa.....

question .... what happens to my SXPO ? I presume they would be treated much the same as SXP shares - minus the exercise price??

I have no experience of t/o or merger situation with outstanding company issued options?


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## nevieboy (11 June 2008)

Hi Dukey or Grace (or anyone else that can help)
I noticed on etrade that there is something on Sapex that i don't understand.
      BUYERS                                   SELLERS
1 @ .88                                             3 @ .70
1 @ .82                                             1 @ .71
1 @ .80                                             1 @ .715
1 @ .77                                             1 @ .76
6 @ .75                                             1 @ .77
3 @ .74                                             1 @ .83
3 @ .735                                            1 @ 1.10
1 @ .72
1 @ .705
9 @ .70

 The share price closed at .695  
So why are the top 9 buyers willing to pay more than the top seller?
Shouldn't the seller want to sell more than what the buyer is asking?
I hope it all makes sense?
Thanks guys.


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## blehgg (11 June 2008)

nevieboy said:


> Hi Dukey or Grace (or anyone else that can help)
> I noticed on etrade that there is something on Sapex that i don't understand.
> BUYERS                                   SELLERS
> 1 @ .88                                             3 @ .70
> ...




Gives you priority over the other buyers for one.

The volume traded determines the median buy price ~ so just because they put the buy price at 88c doesn't mean thats the trade price.

If your using comsec, u can usually tell the trade price by the pre-open indicative price.


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## cfollett (12 June 2008)

Dukey said:


> 90cps sounds pretty good - but then sxp could have humungous resources in arckaringa.....
> 
> question .... what happens to my SXPO ? I presume they would be treated much the same as SXP shares - minus the exercise price??
> 
> I have no experience of t/o or merger situation with outstanding company issued options?




Looks like the offer is 72c for heads 50c for options.. I was hoping for a bit higher.

The options had about 4 years left on them so wishing they were a bit higher.

Can take either LNC shares, cash, or 50-50.


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## nevieboy (12 June 2008)

blehgg said:


> Gives you priority over the other buyers for one.
> 
> The volume traded determines the median buy price ~ so just because they put the buy price at 88c doesn't mean thats the trade price.
> 
> If your using comsec, u can usually tell the trade price by the pre-open indicative price.




Thanks blehgg for clearing that up for me.
So the offer is .72c per share. If not in for the long term, and the share price rises way above the offer price is it worth to sell it and move on? 
Just a thought.
Thanks


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## grace (12 June 2008)

nevieboy said:


> Thanks blehgg for clearing that up for me.
> So the offer is .72c per share. If not in for the long term, and the share price rises way above the offer price is it worth to sell it and move on?
> Just a thought.
> Thanks




I disclose holding both LNC and SXP, and I personally think the deal is good for LNC, and the share price movement in LNC would support this.

An offer of $104million for SXP......they are high risk, but they have plenty of plays that could be company makers, and a whole basin to come up with something (they already have a couple of billion tonne of low grade coal).  Plenty of studies have identified similar coal in parts of their basin to the Surat and Bowen Basins (and we all know what's happening there!).

The strange thing is that to take LNC shares, holders have to wait until the VWAP 5 days prior to the shareholder meeting (should be August) to determine just how many LNC shares one gets.  This means we have LNC's commissioning this month to have an impact on the share price.  Will that be up or down?  I guess if it is successful, one would think SXP holders will then get less LNC shares than they could in fact buy on market today.......

Do you sell, or hold for perhaps a higher bid from another party, or take the LNC shares in a couple of months?  SXP is up for $1million break fee if another party make a deal, but in the scheme of things, that's probably not much.

These are the questions running through my brain at present.


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## Dukey (12 June 2008)

Mmmmm - personally I think SXP have under sold themselves.   They have 65000 km² !!! and although the resources are not JORC'ed - there has been enough historical drilling to KNOW there is alot of coal there. 
Media reports suggested $150M and that would have been fairer I think.
Some of the SXP tenements surround those of GLX who claim around 1.4B tonnes.  I believe SXP would eventually be aiming much much higher.  Add to that - potential for coventional oil, and gas, diggable coal, and regualar CSG.....   if LNC get SXP for $104m Mill - they are laughing.

... I'm not.

Add to this that LNC s.p. has charged so hard recently - it may well be due for correction (though a successful pilot might help it to continue upwards... ?) 
Basically ... I'd much rather SXP had held them off for a year - till they had some resources confirmed and LNC had their pilot up and running....

I know why LNC want to eat them up now... because in a year from now,  they would have to pay much much more...

Grrrrrrrrrrrr  - ripped OFF!!

-all just my  I guess
-dukey


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## Dukey (12 June 2008)

Gawwwwd  - just checked SXP's presentation from March - inferred resources target 5.6B tonnes !!!  

Not sure about the area around GLX now - can't find where I saw that info - maybe I'm getting confused!??  anyone remember anything about that?

But still - I cannot for the life of me understand why SXP has accepted this deal so quickly.   Why sell out just before paydirt??

-dukey.


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## grace (12 June 2008)

Dukey said:


> Gawwwwd  - just checked SXP's presentation from March - inferred resources target 5.6B tonnes !!!
> 
> Not sure about the area around GLX now - can't find where I saw that info - maybe I'm getting confused!??  anyone remember anything about that?
> 
> ...




Dukey, I think we can see the difference in the strength of management here.  Andrew ??? of Sapex (the founder and MD) is ex-SA govt (petroleum division).  He took up the leases then floated as I recall.  I read his background, and wasn't all that impressed.  Perhaps he was only in it to flog it off.  He has been a long time getting around to setting up for drilling for oil.  Linc, in my opinion, seem to have very good management, and took the opportunity to move on SXP, before anyone else.

The other night (pre Linc's approach) I spent some 3 hours studying Sapex's holdings, including many reports written about the coal depths, ages etc.  They have plenty of coal at the right depth for CSM.  Just one quote from my research:-



> "Extensive and thick Permian coal measures occur in the intracratonic Archaringa basin.  These deposits are similar in age to proven eastern Australian CSM producing basins (ie. Bowen and Surat basins)."




If the basin is really that prospective, Linc won't be the only ones running their eye over it!


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## Dukey (12 June 2008)

grace said:


> Dukey, I think we can see the difference in the strength of management here.  Andrew ??? of Sapex (the founder and MD) is ex-SA govt (petroleum division).  He took up the leases then floated as I recall.  I read his background, and wasn't all that impressed.  Perhaps he was only in it to flog it off.  He has been a long time getting around to setting up for drilling for oil.  Linc, in my opinion, seem to have very good management, and took the opportunity to move on SXP, before anyone else.
> 
> The other night (pre Linc's approach) I spent some 3 hours studying Sapex's holdings, including many reports written about the coal depths, ages etc.  They have plenty of coal at the right depth for CSM.  Just one quote from my research:-
> 
> If the basin is really that prospective, Linc won't be the only ones running their eye over it!




I agree - but I wonder if the deal has been done in such a way as to make it difficult for others to jump in.   Will have to have a closer look.... but thinking about the $1M penalty for dropping out - it will be chicken feed if a better offer comes along, and surely SXP would have allowed for that possibility.

... here's hoping.
I have no problems with LNC/SXP joining - it makes sense - but as an sxpo holder I think it's worth more.... but maybe I'm biased ..... not maybe - definitely!  

--- interesting side note: why was the trading halt announced as 'merger talks' - when it is more like a friendly 'takeover'.   - or is there no diff.?


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## Markcoinoz (12 June 2008)

Well,

I am not impressed at all.

Sapex Objective

To be a significant energy producer through exploration, discovery and development of oil and coal seam gas in the under-explored Permian sediments of the Arckaringa Basin and also evaluate the commercial potential of the large coal resources in that basin.


Blah!! Blah!!

Considering Andrew had been CEO of Mines & Energy Sth Aus. and knew the value of the Arkaringa Basin Tenements 65,000sq/klm, why did he do a sudden backflip?

I invested in them last year and waited patiently expecting this company to turn out to be a major in a few years to come.

Well, Andrew and the boys figured that they could make a nice tidy sum now rather than do the hard yards and bring shareholder value.

Good one Andrew.

Your objective appears to be selling prime real estate for a song at the shareholder's expense.

Even that you appear to be lacking.

I have sold out!!!!

Wouldn't touch any other company he is involved in with a 10 foot pole.

Cheers markcoinoz


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## nevieboy (13 June 2008)

Hi all,
Might be a silly question but here goes anyway.
If I understood the announcement correctly that Linc are going to pay .72c per share cash consideration.
Does that mean they will send me a cheque sometime after the merger for 
.72c per share for every share I hold or  will I receive the equivalent amount of Linc shares? 
So theoretically speaking Sapex shares will never trade above .72c unless someone decides to buy into them without reading the previous announcements?
Have I misunderstood the announcement?


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## grace (13 June 2008)

nevieboy said:


> Hi all,
> Might be a silly question but here goes anyway.
> If I understood the announcement correctly that Linc are going to pay .72c per share cash consideration.
> Does that mean they will send me a cheque sometime after the merger for
> ...




As I understand it, Linc will give you 72c, or half cash and half LNC script, or all script (whichever box you tick).  The shareholder meeting will not be until August I think (to approve the scheme), and to determine how many LNC shares SXP holders will get will be the VWAP 5 days prior to the meeting.  

You will get more than 72c if another party makes a higher bid.  What is the likelihood of that?  SXP have to pay a break fee of $1mill, and can not approach another party.  LNC already own 5% of SXP, and one would assume they are buying on market at present, as it is less than the 72c they will have to pay, come a few months time.  The more LNC buys, the more difficult it becomes for someone else to takeover.  Now they have no limit to how many they can buy on market as they have announced the merger to market. 

I sold out today, taking a risk that I will lose out if there is a higher bid.   Watch the bid come in next Monday... 

Also, the scheme needs shareholder approval (check 50%??).  However, given it has board approval, that must account for quite a bit, including the ESG directors etc.


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## In-consistant (13 June 2008)

grace said:


> As I understand it, Linc will give you 72c, or half cash and half LNC script, or all script (whichever box you tick).  The shareholder meeting will not be until August I think (to approve the scheme), and to determine how many LNC shares SXP holders will get will be the VWAP 5 days prior to the meeting.
> 
> You will get more than 72c if another party makes a higher bid.  What is the likelihood of that?  SXP have to pay a break fee of $1mill, and can not approach another party.  LNC already own 5% of SXP, and one would assume they are buying on market at present, as it is less than the 72c they will have to pay, come a few months time.  The more LNC buys, the more difficult it becomes for someone else to takeover.  Now they have no limit to how many they can buy on market as they have announced the merger to market.
> 
> ...





Put all three together & you have one umungest company. Owning three quarters of S.A Mining Revenue in years to come & starting @  these, up to date times.

If only the Government would pull its finger out. And relise the potential we have and the things we can do the elimunate the up trend prices of fuel and the Americans of course. Got to keep it all to our selfs, and not sell it out like Canberra's unique uraniun farm in the sevent'ys.

I got me money on Sapex to hold. Took a sticky beck in the Sapex landing  zone the other week, all I saw was magical lights, be-wilded noises and ufos taking off. 

"Takes one to know one"


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## In-consistant (13 June 2008)

What does it mean to put the brakes On! When market Cap is at 47,931,310 and rising buy the Ten's of thousands a week, P/E ratio is of -417,39 back up gearing. Comparason agianst the Energy sector, exceeding with bliss. Volume has  doubled its highest average. In its stages, considering survey results and resources are true.

Linc prefides a merger, Sapex solutes the proposal and the proposal goes ahead. Do we see a operation go ahead for Australia's largest natural enviromentaly friendly mining experdition. Or a funny farm fit for a drongo.

I believe its put 2&2 together and let the minning experdition begin. If there resuts and mesurments ar as good as claimed, you would exspect Interest to rise in the coming weeks. Compounding immaculant success in the future. For the times to come.

Sitting on 71.5 awaiting Adjustments.


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## grace (14 June 2008)

nevieboy said:


> Hi all,
> Might be a silly question but here goes anyway.
> If I understood the announcement correctly that Linc are going to pay .72c per share cash consideration.
> Does that mean they will send me a cheque sometime after the merger for
> ...




See my post above, but also, I hold plenty of LNC and ESG already, so should LNC be successful, I will enjoy the upside to SXP via LNC.  ESG farming into SXP acreage for CSG so will enjoy some upside there too from SXP should it eventuate.   I might add that I took my money as the market is in correction mode, and I am hoping to pick up something else at a discount.

You need to consider your tax situation as well in relation to holding or selling, and of course any higher bid from other parties as previously mentioned.


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## nevieboy (15 June 2008)

Hi Grace,
What I ment was not a third party buying sxp, but share traders (like ourselves) buying into sxp.
That's what makes me think why the share price will not go over .72c
Hope I'm making sense.


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## grace (15 June 2008)

nevieboy said:


> Hi Grace,
> What I ment was not a third party buying sxp, but share traders (like ourselves) buying into sxp.
> That's what makes me think why the share price will not go over .72c
> Hope I'm making sense.




Well, you and I wouldn't be buying over 72cents.  Market obviously not confident that another offer will come in.  Probably will now that I have sold....


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## nevieboy (16 June 2008)

grace said:


> Well, you and I wouldn't be buying over 72cents.  Market obviously not confident that another offer will come in.  Probably will now that I have sold....




Hi Grace,
Yeah I decided to sell sxp today. Had them for just over a month and with a 43% gain I decided to sell. Sapex has done it's job for me.
Now it's time to move on to some other stock to add to my portfolio.
Thanks for your replies.
Happy trading.


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## In-consistant (23 June 2008)

I can't believe this, SXP was doing so well without having the interferance of LNC, I might as well sell, -its gone to ruines. It had serious momentum, with MACD average was well above the going rate of sky's the limit. Im totaly discussed that LNC had gate crashed the party. I saw and felt enormass charting potential for SXP, provided it was taken seriously.

I'll have to take this one on the chin, and think of the positives if there is any. I must say I don't quite understand, how a merger with LNC's, could be so fatal to SXP's performance and why it would name SXP overbrought. Not quite sure on whats going on, and what it all means but the buck stops here for now.


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## In-consistant (29 June 2008)

In-consistant said:


> I can't believe this, SXP was doing so well without having the interferance of LNC, I might as well sell, -its gone to ruines. It had serious momentum, with MACD average was well above the going rate of sky's the limit. Im totaly discussed that LNC had gate crashed the party. I saw and felt enormass charting potential for SXP, provided it was taken seriously.
> 
> I'll have to take this one on the chin, and think of the positives if there is any. I must say I don't quite understand, how a merger with LNC's, could be so fatal to SXP's performance and why it would name SXP overbrought. Not quite sure on whats going on, and what it all means but the buck stops here for now.





Unreal 15 days later and you have won the stunner deal.
looks like Linc's have hit it with a steam rooler and its compacted into nothin.

Time to email Andrew with sum concerning questions?


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## Dukey (2 July 2008)

Re: merger with LNC.    I had decided to hang on to my options for a bit to see if another party turned up.  Nothing much happening, and was getting close to cashing in - but last week there was an interesting development.... though I'm not sure if it's really significant.

27 June announcement - MM&E Capital - becoming substantial holders of SXP   after buying up 5.3% of SXP shares from the 12th June.

So now I'm wondering... why would they do this now, unless they think there is a chance of another bidder for SXP turning up??  I mean if they want LNC - they could just buy it now at $3.70 = to the recent funding deal.

What do people think - do MM&E have an inkling of something we don't know about?  ... or are they just  taking a punt?

- dukey.

EDIT: interestingly one of MM&E's funds is called the Takeover target fund! (see bottom of this link)
http://www.mmecapital.com.au/content.asp?nodeid=3


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## Dukey (4 July 2008)

Dukey said:


> Re: merger with LNC.    I had decided to hang on to my options for a bit to see if another party turned up.  Nothing much happening, and was getting close to cashing in - but last week there was an interesting development.... though I'm not sure if it's really significant.
> 
> 27 June announcement - MM&E Capital - becoming substantial holders of SXP   after buying up 5.3% of SXP shares from the 12th June.
> 
> ...





Well... LNC up to 17 odd % holding of SXP now - so I'd punt that it's all over bar the paperwork.   I'll take my cash, rather than wait any longer!!

Bye SXP - + 100% - you were good to me for a short time!!!!!!!!


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## Dukey (16 July 2008)

MMmm - could still be some interesting goings on here - just noticed MM&E capital have got to 10.2% stake in SXP.   ...
10% has been mentioned elsewhere (RPM thread i think) as being enough equity to block a takeover.....   not sure if that applies generally or if the rules change case to case....

Can anyone confirm that 10% is a general 'blocking' stake?

-not that it matters - I took my profits as previously mentioned!!  

(hope that won't turn into )  !!

-dukey


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## grace (16 July 2008)

Dukey said:


> Can anyone confirm that 10% is a general 'blocking' stake?
> 
> --dukey





Pretty sure that you need 90% to be able to take over the remaining 10% of shares you don't hold.  I thought this was across the board.


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## In-consistant (29 July 2008)

What I can't understand is SXP's charting performance? it's been recieving alot of attention, more buyers and of course sum sellers, but why is it that SXP has lost it's spring in its step.
All it's been doing now for the past month is act like stale mouldy bread. As stiff as a board. SXP managment must be crap, to $%&#@ hell with it.
Waste of good clean energy, time and money.


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