this is a bit curious.i have no shares in ADE, but in ICN.thats...

this is a bit curious.
i have no shares in ADE, but in ICN.
thats why the action at ADE is of great interest.

Question:
why does ADE asx release head up "Nappameri Trough Alliance with Beach Energy".

Thats is frankly, mischievious, unless I am missing something.

the release is actually a placement and proposed share issue.

nothing more.

if they had wanted to form a more comprehensive "alliance" they don't need to issue shares to Beach - all they have to do is write on a bit of paper!

I am NOT saying the issue to beach is neccessarily bad - i am saying the way this issue is presented is very curious imho.

the s/h of ADE need to be careful.
Beach is to get 19.95% s/h.
thats very much a blocking stake.
no predator can get to 90% without Beach.
just look at ESG/STO situation.

the point is, the ADE s/h are foregoing a real premium for control. whilst Beach will be invited to the Board, a holding of 20% can very much control the composition of the board if Beach so chooses.
because most s/h don't vote - so a block of 20% who do vote, will often control the outcome.

But some things seem clear.
- Beach seems intent on tying up this really promising shale gas resource - and this 20% will do that
- it shows just how valuable this resource must be
- ADE believes it will be in need of funding to keepm up its work comittments in C/B
- if BPT declines a Board seat, then ADE s/h can expect further action later on from Beach
- it must mean that there almost assuredly will be more action wrt consolidation of these permits.
- BPT does not EVER provide a free lunch to anyone - don't snuggleup to beach.

cheers (just my opinion - but exciting times)
what will be interes