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QGC - Queenland Gas Company

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The announcement is not clear is QGC being taking over or is QGC taking over someone else it's possible someone is taking over both!! which leaves BG or Shell

cheers laurie
 
laurie said:
The announcement is not clear is QGC being taking over or is QGC taking over someone else it's possible someone is taking over both!! which leaves BG or Shell

cheers laurie
Click to expand...

Media seem to think it is QGC going for Sunshine, rather than the other per above post and here is another writeup.

Hasn't hurt my other takeover hopefuls ESG and PES today either. Just waiting to see what happens there.

QGC seem to think they'll have it sorted by today.

http://www.businessspectator.com.au/bs.nsf/Article/QGC-in-trading-halt-HNW3S?OpenDocument
 
This takeover seems to be causing a headache for the QGC shareprice - are they paying a premium for SHG?
I don't think they are considering SHG's prospects going forward. They say they'll pick up an extra 1000pj's by the end of the year with the takeover, but what about the extra potential SHG has sitting in the ground.

The probable truth is that SHG wouldn't make it on it's own, and QGC will.
 
Hatchy said:
This takeover seems to be causing a headache for the QGC shareprice - are they paying a premium for SHG?
I don't think they are considering SHG's prospects going forward. They say they'll pick up an extra 1000pj's by the end of the year with the takeover, but what about the extra potential SHG has sitting in the ground.

The probable truth is that SHG wouldn't make it on it's own, and QGC will.
Click to expand...

not to mention that sunshines reserves are right on the door step of gladstines proposed lng plant,...
 
Any thoughts on what has caused the sharp increase today? Volume up significantly (8 times usual daily volume already) and SP up 25%.

I know today is a good day for the markey in general however the average gains today are circa 4% not 25%.

Short sellers letting go of positions etc?
 
Well it was too cheap at the end of last week - you could have picked up shares less than 3.80 - that's just rediculous compared to where QGC will be post LNG plant.
 
Article in The Australian explains it along with why the other CSG players in Qld are up 10% on average across the board.

Extract follows

The killer punch comes with Conoco’s purchase of 50 per cent of Origin’s reserves for $9.6 billion, including an upfront payment of $US5 billion.

The move would seem certain to kill BG’s proposed $13.5 billion bid for the entire company and will set in train a mass consolidation of the sector, with Queensland Gas, Arrow and a multitude of smaller players part of a mass land grab.

The move came as Origin’s chair Kevin McCann released a copy of a Grant Samuel independent experts report valuing the company at between $28.55 and $30.71 a share, which is again well above the present $15.37 a share bid on the table from BG.

Some are now dubbing the BG foray into Australia as “blunder down under” but this deal has shown only the foolish or brave declare victory too early.

The non-coal seam assets owned by Origin, including its retail gas and electricity assets, are valued at around $10 billion and now Conoco is willing to pay $9.6 billion for just 50 per cent of its coal seam gas assets.

From the US company perspective, the maths is simple - the deal works out at $1.88 per gigajoule of gas and exploration and drilling costs at $2.50 a gigajoule.
 
TheAbyss said:
Article in The Australian explains it along with why the other CSG players in Qld are up 10% on average across the board.

Extract follows

The killer punch comes with Conoco’s purchase of 50 per cent of Origin’s reserves for $9.6 billion, including an upfront payment of $US5 billion.

The move would seem certain to kill BG’s proposed $13.5 billion bid for the entire company and will set in train a mass consolidation of the sector, with Queensland Gas, Arrow and a multitude of smaller players part of a mass land grab.

The move came as Origin’s chair Kevin McCann released a copy of a Grant Samuel independent experts report valuing the company at between $28.55 and $30.71 a share, which is again well above the present $15.37 a share bid on the table from BG.

Some are now dubbing the BG foray into Australia as “blunder down under” but this deal has shown only the foolish or brave declare victory too early.

The non-coal seam assets owned by Origin, including its retail gas and electricity assets, are valued at around $10 billion and now Conoco is willing to pay $9.6 billion for just 50 per cent of its coal seam gas assets.

From the US company perspective, the maths is simple - the deal works out at $1.88 per gigajoule of gas and exploration and drilling costs at $2.50 a gigajoule.
Click to expand...

Hm sounds interesting

Earnings and Dividends Forecast (cents per share)
2008 2009 2010 2011
EPS 4.0 6.0 9.1 2.1
DPS 0.0 0.0 0.0 0.0

Date: 1/9/2008
Author:
Source: The Australian --- Page: 28
Queensland Gas Company (QGC) MD, Richard Cottee, expects further consolidationin the energy sector, but does not believe QGC is at risk of takeover. Cotteedenied QGC could become targeted by BG Group if its partner in a proposed LNGexport facility in Queensland fails in its efforts to acquire Origin Energy. QGCis proceeding with a merger with Sunshine Gas, which has proposed a rival LNGproject at Gladstone in Queensland

Date: 1/9/2008
Author:
Source: The Sydney Morning Herald --- Page: online
Queensland Gas Company (QGC) MD, Richard Cottee, expects there will be furtherconsolidation in the Australian energy sector. Cottee does not believe QGC issusceptible to takeover. The company recently announced a $A244.57m net profitfor 2007-08, compared with a $A12.2m loss previously. Great Britain's BGGroup, QGC's partner in a proposed LNG export facility in Queensland, haslaunched a $A13.8bn hostile takeover offer for Origin Energy, while QGC isproceeding with a $A830m merger with Sunshine Gas, which has proposed a rivalLNG project at Gladstone in Queensland

Date: 1/9/2008
Author: Tracy Lee
Source: The Australian Financial Review --- Page: 14
Queensland Gas Company will continue to grow through acquisitions and thedevelopment of its liquefied natural gas (LNG) project in Queensland. Inlate-August 2008, CEO Richard Cottee said that the company has the ability tobecome as large a supplier of LNG as Woodside Petroleum
Click to expand...

thx

MS
 
Like almost everything this got smashed last week. How do people rate QGC compared to the other big gas assets at Origin & Santos, also Arrow?
 
QGC has very good prospects with the alliance with BG - they'll soon have a plant and the ability to sell gas at world prices. That'll mean a fantastic cash flow.
 
Not too mention a lazy $800 m in the bank for exploration and acquisition. With some exemplary management these guys can set themselves and their shareholders up for a very good future.

My faith remains in Cottee.
 
Are QGC and AGL up to something?

Both are in a trading halt until Tuesday.

AGL owns about 25% of QGC.

Or is this just a coincidence?
 
Maybe, AGL is selling its stake in QGC. This has been flagged in the press media before.

But......SHG and RPM are also in trading halts. So whatever is happening is also going to have an affect on the two companies that QGC is buying.

Interesting......
 
if you look at the past coupe of announcement made by AGK, you'll notice that they are trying to dump their holdings in other companies to cover their debts... don't know if this one will be similar...
 
Won't be voting for a merger, or accepting any bid. I'm happy with QGC and would never think about diluting my purely australian based CSG interests.
 
be watching Mr Cottee and friends on this they will not be popular with shareholders if they sell cheaply
cheers laurie
 
Interesting turn of events with BG. They have a distinct advantage with the Pound v Aus $ plus the decreased value of QGC SP at the moment through no fault of QGC. You cant really blame BG for having a crack really.

Not so good for shareholders though as the BG holdings and agreements in place dictate that it would be very difficult for any other players to justify a tilt at QGc which for the holders means a lack of competition so dont count on too high an offer (insert a look of utter frustration icon here).

Talk seems to be around a $5.80 to $6.30 per share offer to AGL which in todays climate is a fair offer however it will look pretty lame in 12-18 months as the Curtis project nears fruition imo. What BG offer to QGC board and general shareholders is yet to be seen.

Should BG offer somethong north of $6 i will probably take it at the moment if it hits the table.

The alternative is that BG secures the AGL holding and leaves it at that for now (a lot less likely but you never know i guess).

Apparently the board are reviewing an offer for their personal stake if you can believe the press this afternoon which would suggest that the offer is more than decent to their minds (not necessarily ours of course).

All in all i am pleased that this offer will protect the QGC SP for a while and hope that it takes a long time to evolve so some sanity can come into this equation (need the management to take a very long term view here).
 

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