Thanks for sharing, you clearly have been round the IGAS and Dart traps.. think the SP is starting to take your view, edging up a little admittedly on small volume. There has been some good PR put into today's announcement.. I liked "national energy champion" which was immediately parroted on BBC radio (and Dart are no dummies at PR either ... take a look folks at the Dart Energy Scotland website (where the outcome of a key public hearing is due late in year concerning Airth where some handy reserves are begging for production)); think the timing was accelerated by concerns that the AIM intro on Monday could have pushed up the SP... also we'll get the BGS soon, probably after the 22 May elections! There has to be stock market scarcity value now, with Cuadrilla unavailable, EDR essentially the only other play (UJO too tiny and EOG great co but French and Irish assets dominate its picture)... definitely warming to IGAS!
Big oilies getting involved would be bad news for UK shale .
What would be much better would be for big US shalies like EOG Resources or Continental to get involved and by the time they do I've got a feeling they are going to have to be dealing with Andrew Austin .
As a long term Igas and Dart shareholder I'd like to explain why this deal is a massive win-win .
An all cash takeover offer for Dart would have to have been in excess of 50 cents per share to stand a chance of being successful .
The only reason why Dart shareholders like myself will agree to this offer is because we retain exposure to the assets .
Essentially Dart shareholders will view this as a merger .
Forget about the perceived premium . I top-sliced Dart at 16c and they are in better shape now than then .
When Cuadrilla/A.J. Lucas farmed out some of their acreage John Mc Goldrick said that "The playground has got smaller" .
With today's consolidation it got a whole lot smaller still .
Couple of things to keep in mind :- New South Wales Acreage - Will be interesting to see whether Igas attempt to sell the New South Wales acreage or wait for the East Coast gas shortage generated by the imminent startup of LNG projects to force the NSW Govt to become more CSG friendly . In 24 months the acreage could be worth more than the current market caps of Igas and Dart .
- Gainsborough Trough acreage - Igas have increased their interest and operatorship of extra licenses by acquiring Dart's stake . This can be considered good housekeeping too . - Dart have an option to acquire 80% of PEDL169 from Alkane . If Gainsborough trough is a success then PEDL169 is likely to be super prime .
- Exposes Igas to sub basin's it wasn't previously exposed to . - Cleveland Basin PEDL146
Be in no doubt that Igas have out-manouvred the majors here and closed the deal .
Andrew Austin has shown that he is THE mover and shaker in UK onshore .
Our man is The Man and he's on a roll and I'd be very surprised if the consolidation has finished .
I wouldn't be surprised to see him make a move on Egdon or even Celtique and try to acquire part of Europa's interest in PEDL181 to cover the bases .
Dart have got some, alleged to be, geological promising hotspots and a good diverse holding in the UK. IGAS looks to be a very good share to hold for the future., wish I had more of them. I believe that the market could now do with one or two (perhaps several) other companies into UK Shale, which could increase competition and keep the well head price lower. But, where are the big oillies ? They have not made a move yet. Perhaps the next round of licencing will bring them out ?
I only hope Igas has got its sums right. I have never heard of a premium this big - no wonder Dart is enthusiastic about the deal - the related value of their shares have increased to the detriment of Igas's. Our father, which art in heaven -- I'll have to go now I have a lot of vomit to clean up...WTFFFFFFFFFFFFFFFFFFFFFFFF
they are paying a big premium... sp was .11 AUD throughout April, closed at .125 this morning ... on the one hand, I think they are diluting assets per share.... on the other hand, they are paying with shares and ending up with a bigger co... even at this price, DTE's assets could be undervalued vs cash (maybe just not as undervalued as IGAS's assets)... Either of these arguments could hold sway, so maybe it's hard to call the short-term direction of IGAS's SP?..
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.