JAKSPARAThis is what jakspara wrote on another subject heading.I...

JAKSPARA
This is what jakspara wrote on another subject heading.
I HOPE YOU DON'T MIND ME POSTING THIS ON AN OXX FURUM.
Thought it was a great post. I agree totally.

Raks, IMO (and a handful of other HCites) OXX is by far the best positioned little oiler, offshore OZ. A huge year ahead in 2011, with Shell/OMV/ENI JV's and with a big chunk of CUE/MOG shares in the kitty we have exposure to Artemis drills etc. also. I am salivating over the Taranaki seismics being completed, could be very tasty. Huge holding of very promising permits and a one of the best, if not the best, Exploration and Investment Philosophy's from a small cap oiler ie.....


"Be an entry point for investment in high quality international scale opportunities;
Acquire large permits with low obligations in geologically prospective areas but with corporate transformational potential and clear pathways to commercialisation (e.g. Taranaki Basin);
Acquire known resources with development potential (e.g. Cornea);
Acquire strategic investment opportunities with strong growth potential (e.g. Central Petroleum with its whole of basin approach to gas and coal seam gas plays);
Conduct initial exploration (seismic data acquisition etc.) on own account (e.g. Winchester);
Focus on risk reduction and avoid direct funding of high risk, expensive drilling obligations;
Farm out to substantial industry participants with the expertise to assess high value opportunities with development potential (e.g. farmout to OMV/ENI and the scope in the Exmouth Plateau for multiple giant and super giant gas fields)."
http://www.octanex.com.au/about-us.html


A really solid little oiler, following in the footsteps of CUE (G.Albers was also the founder so makes sense).

Keep an eye on OXXO or OXXR which finish trading in a couple of weeks. They can be partly paid by 31stDec (5cents) and will trade under OXXCA, so worth looking out for those also. To be honest the heads are incredible value anyway but the leverage is where its at. Considering you get 3 OXXO/OXXR for the price of 1 CUE share (this also takes into account the first 5cent call) you basically get exposure to over 50% of CUE's 2011 drills as well as OXX's big targets (with OXX's holding in CUE 5 OXX shares gives you exposure to 1 CUE share). IMO the options should be trading higher but hey whos complaining i have certainly been scooping them up lately, very happy :)

I cannot find a better up and coming O&G stock on the ASX on a risk/reward basis. Plenty of cash, very astute management, mammoth targets, exposure to other high leverage plays in CUE/MOG etc.

When the RI is completed 1Tcf of gas will be worth roughly $2.50 to OXX. When you take a look at what they have coming up and the permits they hold it is very likely multiple Tcf's could be delivered by this sleeping giant. I could go on but i think you get the point that i like this company a little, maybe i am biased but the facts are there, cheers :)