BG Group now sole bidder for Pure Energy

BG Group is now the only bidder for Brisbane-based coalseam methane company Pure Energy after Arrow Energy has confirmed it will not be raising its rival cash and share offer, which expired Mar. 13.

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Mar. 16 -- BG Group is now the only bidder for Brisbane-based coalseam methane company Pure Energy Resources Ltd. after Arrow Energy Ltd. has confirmed it will not be raising its rival cash and share offer, which expired Mar. 13.

BG's all-cash offer of $8 (Aus.)/share of Pure, increasing to $8.25 (Aus.)/share if it secures 90% or more of the target before the bid ends on Mar. 23 is now the only one in the market.

However Arrow has not said whether it will continue to hold its existing 20.31% stake in Pure to ensure it receives the best possible deal it can get from BG.

It is possible that Arrow might be interested in just some of Pure's assets, which raises the thought that the company is holding out for an asset-for-shares swap.

Shell Australia, which holds 11% of Pure, said earlier this month that it would accept BG's offer in the absence of a superior bid.

If BG wins Pure it will secure enough coalseam gas reserves for its planned LNG gas project proposed for the Queensland port of Gladstone. At the moment the company has sufficient 2P reserves to supply one train for 10 years and enough 3P reserves for two trains on 15 years' supply.

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