I kinda think that some folks have bailed cos they feel that Beach taking a strategic stake has limited the potential for gains especially in the shorter term and of course I'm sure that there has been a fair whack of selling to bag some profits after the recent lows.
I'm looking at it from this point of view:
The company is now pretty well funded which should allow them to both progress their own exploration plans and pay their calls to stay in the shale gas plays.
They are now hopefully producing more gas and soon more oil to give them a regular monthly income and hopefully enough to more than cover day to day expenditures.
In short they can get on with the business of running the company without any funding fears. And they still hold all their asset base, no one has taken it off them.
And there is the potential merger with Somerton, who have have some prospective ground and a healthy bank balance.
Yes Beach will be a presence in the background, but it is still Ade's business and there for them to grow. With some success with the drill and continued good news on the shale front, I can really see the share price performing well.
ADE Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
