OIP claims to be a conventional O&G explorer. It was spun out of...

OIP claims to be a conventional O&G explorer. It was spun out of ESG when ESG needed the money. However, ESG retained a significant shareholding and via the farmin maintain a strong hold over both OIP and OIP's CSG assets.

However, it clear to most OIP holders that there is significantly more value (both in terms of resource potential and strategic landholding) than there is value in OIP's conventional targets. Some of the most prospective CSG targets, such as the south of PEL 427 near ESG's Edgeroi, are yet to be drilled.

So, the question is, what does OIP want to be?

IF CONVENTIONAL, DIVEST CSG (AT A FAIR PRICE)

If OIP, as they claim, wish to focus on conventional, that is fine. What they should do is look to sell their CSG assets, be even more cashed up than they are now, and pursue that outcome... perhaps via some acquisitions.

ESG, of course, is the natural buyer for such CSG assets. The synergies are obvious. However, if OIP were truly focussed on maximising returns for OIP holders, rather than ESG, wouldn't they explore non-ESG options for a sale of their CSG assets? Wouldn't Santos and others be very interested in such assets? I think so.

There are ironic parallels with OIP and ESG, and ESG and Santos. In both case the former have the latter as a 20% shareholder. In both cases the latter would like to own all the assets of the former. And in the case of ESG, they have made sure they explore non-Santos avenues, so as to maximise the commercial tensions and returns for shareholders. ESG act in the interests of ESG shareholders, not Santos.

And so it should be with OIP. What is good for the goose is good for the gander. OIP should explore non-ESG options to sell their CSG assets. It is what an independent board should do.

OIP has recently been blocked from a farmin/merger with Energetica. ESG have said that there is little value in these assets, no synergies, and did not want their nor other shareholders' OIP shares watered down by such a transaction. Funnily enough, ESG made no objection to a similar proposal with GGX, which was supported by major ESG shareholder Dennis Morton. GGX had little cash, no synergies with OIP, and yet ESG did not object..?

AGGRESSIVELY EXPLORE OIP'S CSG ASSETS

If OIP does want to explore their CSG assets, then they should. Aggressively. They are in a far better cash position than many juniors, and have more than enough CSG targets, and more than enough cash to explore those targets. There is no need to acquire more assets, when those CSG assets that they do own can be profitably explored to add value for OIP shareholders.

And yet, 3 years has gone by, and such targets have gone under-explored by OIP. It is non-actions like these that have made some OIP shareholders question the independence of the OIP boards, past and present.

So, that is the question that remain for OIP - what do they want to be? If conventional, then they should look to sell their CSG assets in a competitive process. or if CSG is their go, then they should do that.

And if ESG objects to either of these two courses of action, then they should be the right and honourable thing, both by OIP shareholders and their own ESG shareholders, and make OIP a fair offer, either for the whole company or for the CSG assets.

But the current situation is beyond a joke. It reflects badly on all concerned.

ESG should also remember that many many of OIP shareholders are also ESG shareholders.

Come on OIP and ESG, time to start making some decisions, and either take action, or let an independent company BE an independent company!

Yaq