Access, Can I take issue with your thoughts that OXX is wholely dependent on the outcome of Matuku. Its true that it is our immediate drill prospect (although if Matuku is successful, the JV is already lined up to drill Matuku 2 in very short order. This should tell you something about how confident OMV are about the outcome of Matuku 1. If you read the profile on it, they talk openly about it having a high COS as it is a brownfield drill by a operator who is very experienced and well resourced in the Taranki basin. As far as OXX's other prospects irrespective of Matuku, we have;
>$20m cash and no debt. 6 completed and processed 2d and 3d surveys in highly prospective NW Australian areas that are about to be marketed for JV farm outs. The farm in to the Derby block (25%) plus equity in OBL all done for rock bottom prices. Two JV data rooms open in NZ for highly prospective bocks that include prospective oil targets in the hundreds of millions of barrels. A major holding in Peak Oil with the precursor deal in place to take them over for a modest investment. Major oil and gas leases off the WA coast which are now 100% OXX. OXX is proving itself to be the most innovative and capable second tier oil and gas explorer in Aust / NZ (in my opinion). Where the whole sector has been decimated by risk and finance aversion, they have returned cash and in specie shares back to shareholders and have a history out on their own of being able to do cash accreditive deals. They have had their setbacks too, Winchester for example was a major disappointment (but not a complete loss) but you can't lose sight of the fact that we are hairy arsed oil explorers. I think they are arguably Australias best O&G explorer, they have impeccable management and a long history of looking after shareholders. I personally think Matuku will come in but if it doesn't I will still be there as a shareholder. Great things happen to great company's run by great people, you just can't control the timing
OXX Price at posting:
26.5¢ Sentiment: None Disclosure: Held
