re: Ann: OXX: Octanex bids for Orion Petroleu... JTMy estimate...

re: Ann: OXX: Octanex bids for Orion Petroleu... JT

My estimate is that OXX is essentially just valuing OIP's cash ... $11m / 155m shares = 7.1 cents. They will have to cough up something for the options so I guess you can reduce that by a bit to say 6.5 cents, and they are offering 7.25 by way of scrip.

You would have to think that the the Menzies objections to the merger was initiated by OXX/Albers wouldn't you? Fine by me .. they did a good job of exposing some pretty poor ommissions in the Independent's assessment.

Trouble with all of this carry on is that it will be focussing unwanted (by me and ESG shareholders generally) attention on ESG's motivations, propriety and intentions in all of this ... spin off OIP, farm back into their assets, encourage the GGX merger ... maybe they forgot about the risks in all this ... that with a low share price (due to the merger) OIP becomes vulnerable to a takeover by a "third party". I would expect ESG will want to keep OIP's assets in its orbit (particularly as DC has clearly stated the strategic nature of "owning" (read controlling OIP) the northern lease to enable export of gas to Qld!!

Interesting days ahead. Next Tuesday's meeting if it goes ahead will be a beauty!!!!!!!!

H