Interesting rights issue...Set at 2:5 with lots of goodies...

Interesting rights issue...

Set at 2:5 with lots of goodies thrown in...and just weeks to the drilling of Maclean-1 (MOG 30%)

Lets see...

Buy 100,000 shares ($19,000)
Get 40,000 rights (free)
Convert these into shares ($4,800)
Also get 40,000 20c options (free)

Total outlay = $23,800

Equity in return.
shares = 140,000
20c options = 40,000 (value = $3,600?)
future 30c options = 40,000 (current value = $2,480)

The new 20c options should carry a healthy premium due to the free attached 30c options, which themsleves are currently trading at 6.2c.

From the above, it would appear that as long as the shares don't fall below 12.65c after the record date, there is money to be made here.

Especially so, considering the drilling of the somewhat unique Maclean-1 is only weeks away...a large prospect in a proven hydrocarbon fairway...any success here, which some have suggested is a reasonable bet, could see major windfalls for holders.

The proposed record date for the rights issue is August 23...which I think means you need to be holding by August 17th?

Cheers!