OIP 0.00% 4.3¢ orion petroleum limited

GOI've been doing a bit of checking of the detail in the OIP...

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    GO

    I've been doing a bit of checking of the detail in the OIP IE's report on the merger and also in the IE's report in the GGX prospects from 2005. In the latter the Philippines assets are "valued" (on the basis of most probably resources that could be discovered) at between $7m and $18m ... most probable around $12m. In the merger IE report they are now valued at $5.5m (optimal value) despite 4-5 years of far*ing around there spending shareholders money. Value in a couple of years by extrapolation = ZERO!

    And as pointed out by the OXX lawyer at the EGM ... the Canning Basin assets were sold into GGX in March 2008 by DM who then became MD! The consideration was 6.0m shares to DM .. value about $340k at the time. With not one bit of work done there as far as i can tell and no recent discoveries nearby that would upgrade these assets .. the IE valued them at $1.26 - $2.25m .. Optimal value $1.8m. Oil was at US$150 a barrel in 2008 and its US$80 now! The lawyer said the IE valued it at $3m .. 13 times what DM received .. but I can't see that anywhere.

    Just maybe these two items will be rethought by the IE.

    There's also the possibility that the IE has now responded to some of the complaints from McKenzies about the OIP valuation and particularly the CSG assets.

    Wonder what will happen to the merger if the relative valuations chnage substantially ... dead in the water? Would need another round of into to shareholders and meetings to vote on it wouldn't it?

    H
 
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