Why did I buy. You need to be smart enough to read between the lines or the true meaning of the announcement. Some of these line are
1) "120M shares to Gascorp escrowed for 12months", -
Gascorp cannot sell even if tomorrow the SP goes up to $20. They can't dump.
2) MEO currently holds a 70% interest in WA-360-P but intends to offer a 50% interest to a farmin partner willing to: (i) meet the costs of a well to test the Artemis Prospect; (ii) reimburse past seismic exploration costs; and (iii) in the event of a discovery at Artemis, fund MEO’s residual 20% share of the cost of two further wells; -
This is related to item 1. Who is the farmin partner and why would Gascorp agree for just 120M shares which they cannot trade for a year if there isn't something of a deal.
3) The acquisition of Rankin Trend, if approved by shareholders and if the various conditions of the agreement are met, will allow Moby, without any cost exposure, to be a 15% participant in a potentially high impact well in an area where there have been several large discoveries of hydrocarbons and which is close to existing and planned infrastructure.
No cost to Moby. No cost to Moby.
So that's my reason. So what's your reason for shooting down this stock. Too scared to buy or you probably didn't get it the first time you read the announcement. The announcement is just a simple transaction between companies for the what could be the biggest gas plays of Australia. But you need to be smart enough to interpret the announcement and take the plunge from there. The jump in SP can tell you that.
IMHO still cheap and something is really coming up. And yes I'm hoping this could be the next KAR.
MOG Price at posting:
31.0¢ Sentiment: Buy Disclosure: Held
