Some questions - a lot of the value unlock here seems to stem from the XRG bid for STO and then the Emiratis investing in the undeveloped assets (mainly Dorado)
What makes you think XRG will get FIRB approval for this deal?
If FIRB says no doesn't then this kind of fall to pieces... Even if XRG is allowed to do this do you think Dorado is a priority?
No opinion on FIRB situation. I have to imagine XRG would not have made the offer if they don't have a plan in place to handle it. You are correct XRG's focus is LNG. I believe there will be further gas discoveries in the Dorado area and that XRG has enough money to move forward all of Santos shelved projects. With that said, you are buying this basically for cash so worst comes to worst you are just holding this for a long time. My preference is to keep this in an IRA or somewhere where you can let this play out over 3 years.
Thank you for the swift response - I think as you allude to this is basically a nice cash backstopped call option
Agree risk reward is quite interesting
Many thanks!
my pleasure.
HI there interesting note and thank you for this.
Some questions - a lot of the value unlock here seems to stem from the XRG bid for STO and then the Emiratis investing in the undeveloped assets (mainly Dorado)
What makes you think XRG will get FIRB approval for this deal?
If FIRB says no doesn't then this kind of fall to pieces... Even if XRG is allowed to do this do you think Dorado is a priority?
Isn't XRG's focus the LNG as opposed to the oil?
Thanks!
No opinion on FIRB situation. I have to imagine XRG would not have made the offer if they don't have a plan in place to handle it. You are correct XRG's focus is LNG. I believe there will be further gas discoveries in the Dorado area and that XRG has enough money to move forward all of Santos shelved projects. With that said, you are buying this basically for cash so worst comes to worst you are just holding this for a long time. My preference is to keep this in an IRA or somewhere where you can let this play out over 3 years.