Coal Seam Gas Consolidation (and Competition) Continues
Posted by Big Gav
The Age reports that the coal seam gas industry is continuing to consolidate - BG trumps Arrow bid for Pure Energy
Britain's BG Group is looking to expand its foothold in the budding coal seam industry, making an $800 million hostile bid for Queensland explorer Pure Energy Resources.
BG this morning revealed a $6.40 a share cash offer for Pure, offering a 19% premium to a $5.40 a share cash-scrip friendly bid made by Arrow Energy for Pure late last year.
In a sign BG will seek to block Arrow's hopes of buying Pure, BG said it had already acquired 10% Pure's shares and did not intend to sell them into the Arrow offer, which has a 90% acceptance threshold.
The offer values Pure at almost $800 million, and is BG's third major attempt to shore up its resources of coal seam gas in Australia. Last year it made a failed $13.8 billion bid for Origin Energy, followed by a successful $5.5 billion acquisition of Queensland Gas Company (QGC). ...
Both Arrow and BG are pursuing Pure's proved and probable reserves of up to 1395 petajoules to complete rival projects to export liquefied natural gas from Southern Queensland to Asian markets.
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