Arrow LNG, owned by Petrochina and Shell has made an offer of AU$ 520 million (US$ 543 million) to acquire the gas explorer Bow Energy.
"Arrow is seeking to enter confidential discussions with Bow Energy and will continue to provide updates as appropriate," Arrow said in a statement.
Santos Energy recently acquired the remaining shares it did not already own in Eastern Star Gas Ltd. for AU$ 730 million to acquire more resources for its LNG project. Eastern Star were further advanced with their gas exploration projects than Bow Energy who are still working to increase proven resources and this is probably why the company has been valued lower.
Bow Energy is an explorer and producer of coal seam gas in Queensland state, the deal values shares at AU$ 1.48 in cash, which is 67% more than shares were valued at 88.5 cents on August 19, the share price now stands at AU$ 1.415.
Arrow LNG is planning to build an LNG liquefaction facility on Curtis Island with an initial capacity of 8 million tpa for which it has already secured enough resources. However, the company is now looking to expand the facility in a second phase which will see capacity expanded to 16 million tpa, the company will need significant extra reserves in order to provide feed gas for this second phase.
Chiyoda was awarded the FEED contract last week and a final investment decision is expected in late 2012.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/22082011/arrow_lng_bids_for_bow_energy/