Have to agree with Tui on this one. Apart from the flooding problems the cooper is the only thing at VPE producing cashflow. Sure selling the asset might get some short term cash but I doubt it would be a good strategy long term.
Throwing away something that is already a money spinner to back something that may become one would be a dumb move in my opinion. Much less risk in keeping the oil and then which ever way it goes with the CSG (ie BG offer to buy them out, or they get to continue to take their share of the profits when they start producing) they will win. If for whatever reason the CSG assets never amount to anything they still have the oil.
The concept that the current directors are just asset strippers is pretty out there IMO.. The name change and the spiel that goes with it will be rather ironic if that turns out to be the case.
just my 2c worth :)
Tony.
VPE Price at posting:
32.0¢ Sentiment: Hold Disclosure: Held
