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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Bearcatbob who wrote (156238)	8/28/2011 6:21:02 PM
From: richardred	Respond to of 206085

I think that's a continuing depends question. My reply, in no particular order of importance . It's depending on the size of the company that is looking and what fits their scale. Depending what's available,and depending on the amount of capital available (cash and leverage) for possible acquisitions. I would venture most companies in Oil and gas have already done their homework in what their paying for proven reserves and potential discoveries in undeveloped acreage they are buying. Acquiring companies can also estimate costs it would take themselves to explore and develop on their own. Opposed to buying a competitor assets. The Size and actions of one competitor usually leads to the future actions of others. IMO-Of coarse market conditions also play a big role. Especially for a company in the oil and gas business. A commodity who's price of what they look for, can change daily, and be volatile. These same commodities that have a near term impact on all industries using their product in the supply chain. We knew BHP was looking for something when they failed on POT and the Woodside rumors didn't bear fruit. POT currently has a market cap of close to 50 B. Rick