Armour energy is about to list on Thursday 26th. According to the link below it will be the biggest energy IPO in a decade. Like EXE they have an impressive management team made up of QLD's cream of the CSG industry. There is currently a lot of buzz around AJQ.......
But here is what interests me: RBS morgans and Bizzel snatched the IPO deal off of Deutsche and JP Morgans....and according to Downside's post who was the biggest buyer of EXE in the second half of March with over 4 million shares while other big holders were reducing ?? Why it was none other than RBS Morgans.
I put the 2 tenement maps side by side. The northern most tip of the EXE tenements is more or less in line with the southern most tip of AJQ. However on the east side AJQ basically ends on the NT border where as EXE's western borders is very Wintonish. Australia is a vast continent and there is a big distance between Winton and the NT border but not so great when compared to the size of both EXE and AJQ's tenements. What I conclude from all this is that RBS are trying to get their finger into a very large part of the vast gas and oil tenements across the eastern side of Northern Australia. I would be interested to see if RBS have been buying anymore EXE this month. This all gives me a bit of confidence that perhaps RBS might be prepared to stay in for the duration.
One last point I would make is that AJQ lists on Thursday while EXE have stated they will be spudding their first well for the year tomorrow. I can't help wonder about the timing of this and I wonder if EXE are not trying to catch a bit of reflected euphoria from the AJQ IPO. The timing of tomorrows spud may prove to be fortuitous...or smart if it was actually intended that way.
Maybe this is all coincidence. But I'll let you be the judge.
EXE Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
