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
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.
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.
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
http://www.theaustralian.news.com.au/story/0,25197,24545382-5013408,00.html
rumour now is that BG is going to takeover QGC...
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