Mec Resources (MMR.AU) up 9.5 cents, or 15%, at 73.0 Australian cents, nearly doubling already this month. Mec has previously advised of heightened investor awareness of a wildcat well to be drilled offshore Sydney basin in 3Q. Mec affiliate Advent Energy's unit Asset Energy will fund drilling of well and in doing so increase its interest to 85% from 25% in the offshore block PEP11, while partner Bounty Oil's (BUY.AU) stake will fall to 15% from 75%. Mec holds a 51.14% interest in Advent Energy, while BPH Corporate (BPH.AU) has 19.06% and Grandbridge (GBA.AU) 8.75%, with balance held by unlisted Talbot Group. Well will test what partners believe contains multiple gas prospects, some potentially major plays of trillions of cubic feet of gas. Successful well could prove a company maker for Mec, and to a lesser extent other stakeholders. But activity is high risk given A$20 million well cost. GBA up 13% at 39.5 cents, BPH 4.6% at 11.5 cents, while BUY is flat.
GBA Price at posting:
39.5¢ Sentiment: LT Buy Disclosure: Held
