State Gas is now worth $100m more than the company that birthed it
A little over a year ago WA oil producer Triangle Energy offloaded a gas project onto the ASX.
Today, that little gas project is worth $98 million more than its parent.
Triangle (ASX:TEG) spun out a single project in the Bowen Basin in Queensland into a company called State Gas (ASX:GAS), retaining 35.47 per cent.
That shareholding is proving to be profitable.
Despite a squabble with a partner — State said it was taking over the whole project while the owner of the remaining 20 per cent said it categorically was not, thank you — this week it appointed an advisor to handle “inquiries from potentially interested parties”, the kind of comment that hints of takeover offers.
Today Triangle is worth about $31m on the ASX, even with oil production of 1000 barrels bringing in $32,420 pure profit every day.
Its minority stake in State Gas, however, is worth $46m.
State Gas shares hit $1 for the first time on Wednesday, valuing the company at $129m as investors chase the blue-sky dream of potential gas, a potential takeover, and the ever-present knowledge that gas producers will almost be able to name their price on the East Coast in the coming years.