Big European property developer Slough Estates has been selling its non-core assets and with virtually all of Tipperary’s production coming from its Queensland fields north-west of Brisbane, names like Santos and Origin have come up as potential bidders.

It is understood that currently Tipperary sells a significant portion of its production to Origin, which may give that company an edge in negotiations.

But with gas prices in the US trading at least three times than that in Australia, it is thought the bidding may prove too expensive for Aussie companies.

Tipperary Corporation recently settled a longstanding legal dispute with partner Tri-Star Petroleum, enabling Slough to dispose of its stake.

Slough has provided a $150 million credit facility to Tipperary until 2009, of which $100 million has been drawn down.

Tipperary said in its annual report the value of the expected cash flow from its CBM project was US$144 million.