OIP - Orion Petroleum

[prawn_86]

Hello, whats going on here? Up >40% on huge volume and no news?

And drilling happening at the moment? Leaky ship?

 

[grace]

Hello, whats going on here? Up >40% on huge volume and no news?

And drilling happening at the moment? Leaky ship?

No leaks prawn. Just speculation on the buyers side seeing as Santos started moving in on ESG last night (and the connection there with ESG and this one).

 

[YOUNG_TRADER]

What grace said Prawn

You have to wonder about ESG when you consider why they vended out some of their CSG assets to OIP, only to farm in to them and fund them, makes little to no sense

Kinda like this African Uranium company, forget its name that did a split into 2 different companies, then a few years later merged, I remember thinking wha tthe?

Great exploration potential hence I hold a few, but MEL is more on the radar now post ESG transaction as it has reserves comparable to that of ESG!

 

[grace]

What grace said Prawn

You have to wonder about ESG when you consider why they vended out some of their CSG assets to OIP, only to farm in to them and fund them, makes little to no sense

Kinda like this African Uranium company, forget its name that did a split into 2 different companies, then a few years later merged, I remember thinking wha tthe?

Great exploration potential hence I hold a few, but MEL is more on the radar now post ESG transaction as it has reserves comparable to that of ESG!

Similar thing happened with PES. Arrow floated it off at $4mill (or something like that), only to try and buy it back at $1billion. Go figure! I personally think it is just a job for their mates (ie Directors).

 

[YOUNG_TRADER]

Similar thing happened with PES. Arrow floated it off at $4mill (or something like that), only to try and buy it back at $1billion. Go figure! I personally think it is just a job for their mates (ie Directors).

I didn't realise that Grace, but yeah couldn't agree more its all about looking after your mates

Still AOE did come out with a profit after all that, did shareholders get an in-specie distribution?

actually maybe we better continue this conversation via PM as its probably not OIP specific chat (sorry)

 

[malachii]

Well the volume (and price!) in this is certainly building. Climbed to 17.5 cents during the first half hour of open or so (has now eased slightly to 17 cents). I know they restart their drilling program soon but didn't think there were any announcements due so I'm unsure of the sudden increase. Anyone else got any ideas???

malachii

PS PLEASE NOTE!!: I OWN A DECENT SIZE CHUNK OF THESE SHARES (OIP) - SO MY OPINION IS VERY BIASED!!!!!

 

[Miner]

Well the volume (and price!) in this is certainly building. Climbed to 17.5 cents during the first half hour of open or so (has now eased slightly to 17 cents). I know they restart their drilling program soon but didn't think there were any announcements due so I'm unsure of the sudden increase. Anyone else got any ideas???

malachii

PS PLEASE NOTE!!: I OWN A DECENT SIZE CHUNK OF THESE SHARES (OIP) - SO MY OPINION IS VERY BIASED!!!!!

Mate
Congratulations to you (and Seaspirite) for believing on OIP and seeing the value for it. I sold out but hopefully will return to OIP in near future
Cheers

 

[ronaldo]

major shake up going on for this very cashed up company.

must be time for the board to start spending money before a merger is put to the table.

fair value would be hard to define with such little exploration. i am guessing we will see some serious drilling soon. good time too, CSG plays seem to generate plenty of attention when they have any announcements to utilize.

sitting idle on such potentially vast reserves is a wasted opportunity

 

[philly]

This one doesn't seem to get much coverage. An ASX release today advised that the proposed merger of OIP and GGX had hit a hurdle despite the merger being backed by both boards. A group of disgruntled OIP and GGX shareholders have challenged the independent expert reports that accompanied the explanantory materials sent to GGX shareholders regarding the proposed merger. As a result shareholder meeting planned for this week are to be deferred for one month.

The SP closed at 0.087 today on very low volumes. Recent drilling in PEL 6 in northern NSW with JVP ESG has produced some promising results and more drilling is planned for next month. I'll be watching this one closely.
Does anyone have any views on this one?

 

[philly]

mmm, is no one interested in this one? Is CSG on the nose? IMHO the fact it has ESG as a farm-in partner and that more drilling is planned in the near future must be worth some interest. Anybody have a view either way?

 

[malachii]

philly

I've been getting back into this company. At 8ish cents it holds great value as it's cash in hand is a little over 10cents per share. This is on top of some great prospective leases that they hold. They are very tight with their money and where possible seem to us farm ins rather than cash. This is very wise managment at the early stages of exploration. The only down side that I can see is that they dont have any announcements due for a couple of months to excite the market about. So patients is required.

malachii

PS I own shares in this company (again!!). My opinions are very biased. Do your own research!!

 

[philly]

mmm...OXX announces on the ASX that it is making a script takeover bid for OIP. It is offering 1 OXX share for every 6 OIP shares. So at least someone out there has a view about OIP. It will be interesting to see how the SP reacts tomorrow and whether there is any other interest shown.
I am a holder so as always DYOR

 

[malachii]

Philly,

This is a case of OXX protecting their investment. I'm pretty disgusted at how management have dealt with this "merger" with Gas2Gas. I think the latest is almost unforgivable. They sent out the amended documents because the "independant opinion" made a screw up and "forgot" that the project they valued at $X require almost $1 mil spending on it to get it to that stage they were valuing it at. On top of that shareholders received the documents yesterday (or today for me as I live in the country!) without amended voting forms and on page 2 they tell you to get the old forms to the registrar by this sunday at 11am. Me thinks they are trying to pull a swifty and get their hands on all of OIPs cash at about 60-70cents in the dollar on their numbers!

I will vote NO purely on the way they are treating shareholders. OXXs offer is not enough but at least they are open and honest about why they are making the offer.

If anyone requires a copy of the proxy form emailed to them - send me a pm or email at pepptalk at yahoo dot com.

malachii

 

[philly]

Malachii,

I understand OXX's motive but it seem a big ask for it to be successful. It needs to acquire 51% of the shares and the top 20 shareholders hold 61% (that includes ESG who hold 23%) so unless the Directors recommend the offer it's going to be a fizzer IMHO. I agree that we have been poorly treated by the directors regarding the gas2gas deal and they deserve a resounding "NO" for that. I have never really understood why OIP in interested in gas2gas and I would have preferred it to farm in to some more CSG plays. Maybe ESG should step in and bring OIP back home.

 

[malachii]

philly,

Dont need OXX to succeed in the takeover - in fact I'd prefer they didn't as at the price they are offering is still below cash in the bank. We just need the directors to get a kick up the ar$e, get this stupid merger off the books and concentrate on developing/farming in the leases they hold without losing all that wonderful cash they have in the bank. They had done a pretty good job until now.

malachii

 

[philly]

Maybe this is just an April Fools joke
OXX made a bid for all the shares in OIP on the basis of 1 OXX share for every 6 OIP shares. This was quickly rejected by the board.

"The Board of Orion Petroleum Limited (ASX Code: OIP) (Orion) today unanimously rejects the unsolicited and highly conditional scrip bid by Octanex NL (ASX Code: OXX) (Octanex). The Octanex Bidder’s
Statement was served on Orion today.
The Octanex takeover bid offers one Octanex share for every six Orion shares significantly undervaluing Orion. The offer is currently 17% below the price at which Orion shares last traded. Orion last traded at 7.5
cents and Octanex at 37 cents or 6.2 cents of value per equivalent Orion share.
The Octanex bid is also highly conditional and contains conditions, that Octanex was advised when it first stated its intention to bid for Orion, were not able to be met. These conditions include that the Directors of
Orion personally warrant certain matters to Octanex and that Orion maintains available cash resources of at least $11 million until the end of the offer period. Neither of these conditions will be satisfied so in its present
form the Octanex bid is one that cannot succeed.
The Directors will not be accepting for their own shareholdings and recommend that Orion shareholders should not accept it.
Orion’s largest shareholder holding an interest of more than 22% in Orion’s issued capital, Eastern Star Gas Limited, has advised that it will not be accepting the Octanex bid under the current terms for its shares."
Source: ASX

Any thoughts?

 

[malachii]

I think the OXX bid was lobbed in just to try and derail the merger. While it may not have initially succeeded I think it put the wind up the sails of the "independant" valuers and caused the bid to fail. There is no way that the bid will succeed at this price and I'd be very surprised if they changed it. I think they'll just let it fade into the sunset.

However - now we need to look to the future. I still think the directors need to know that as shareholders, we dont appreciate them looking after their own interests instead of the shareholders. They have some good real estate and cash - either they play the game and use these assests properly or they stop drawing a wage and get lost. I'm happy with either scenario but will look carefully at how I vote when the directors are up for re-election next time.

malachii

 

[malachii]

Good to see Toenda-1 well begins drilling next week. Propective resource of over 30 million barrells with 7.7 mil recoverable. Hopefully this shows managment have finished playing silly buggers and are starting to get back on the job.

I think (famous last words) we have seen the low and this will start to move upwards as we get more information about this well. Volume seems to be building in anticipation and prices have STARTED to move upwards with OK support and not a huge amount of shares being "dumped".

malachii

PS PLEASE NOTE!!: I OWN A DECENT SIZE CHUNK OF THESE SHARES (OIP) - SO MY OPINION IS VERY BIASED!!!!!