By Peter Smith in Sydney
Published: February 9 2009 05:24 | Last updated: February 9 2009 05:24
BG Group, the UK oil and gas group, plans to deepen its presence in Australias fledgling coal seam methane gas industry after launching a A$796m takeover bid for Pure Energy Resources.
Mondays cash bid trumps a rival offer for Pure Energy from Australias Arrow Energy.
It comes after BG last October agreed to buy Queensland Gas Company in an A$5.6bn deal the latest example of consolidation among smaller energy companies prompted by the falling price of oil and financial market turmoil. BG is now in the late stages of integrating Queensland Gas, which is based in the Surat Basin.
BG has made repeated attempts to become a lead player in Australias industry for coal seam methane gas gas found in coal deposits
Last year the UK energy group abandoned a A$13.8bn takeover offer for Origin Energy, an Australian group with extensive coal-bed methane assets. BG was rejected by Origins board at the 11th hour with the Australian group subsequently agreeing a joint venture with ConocoPhillips, the US oil group, for A$9.6bn.
Australias coal-bed methane is a relatively undeveloped resource that has attracted interest from several international groups.
Royal Dutch Shell last year joined forces yesterday with Arrow Energy to develop projects in Australia and international markets when it agreed to invest up to A$776m to buy 30 per cent of Arrows coal bed methane acreage in Queensland and 10 per cent of its international assets. Arrow is also a major shareholder in Pure Energy.
BGs offer for Pure Energy is pitched at A$6.40 a share, which compares with Pure Energy last traded price of A$5.28. The Australia groups shares are in a trading halt.
The British group said its cash offer was at implied premium of 19 per cent compared to Arrows offer, which was worth A$5.39 based on Fridays closing prices.
BG underlined its desire to secure Pure Energy after saying it had taken a 10 per cent holding in its targets shares from a range of shareholders.
BG Groups offer gives Pure shareholders the certainty of cash at a time of heightened uncertainty in world equity and financial markets, BG said.
Analysts said Arrow may take profits on its investment in Pure Energy and suggested Arrow may also become a takeover target itself.
Its offer for Pure Energy is conditional on approval from Australias Foreign Investment Review Board and minimum acceptance of 50.1 per cent.
EDITORS CHOICE
Resource nationalism on the wane, says BG – Feb-05
Copyright The Financial Times Limited 2009
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
